{"id":89754,"date":"2024-09-18T00:00:00","date_gmt":"2024-09-18T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/09\/18\/capital-market-authority-clears-first-hong-kong-focused-etf-to-list-on-tadawul\/"},"modified":"2024-09-18T00:00:00","modified_gmt":"2024-09-18T00:00:00","slug":"capital-market-authority-clears-first-hong-kong-focused-etf-to-list-on-tadawul","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/09\/18\/capital-market-authority-clears-first-hong-kong-focused-etf-to-list-on-tadawul\/","title":{"rendered":"Capital Market Authority clears first Hong Kong-focused ETF to list on Tadawul"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Happy almost-THURSDAY, wonderful people.<\/strong> We have a rather busy issue this morning that\u2019s chock-full of M&A (with a bit of debt and investment news to round things out), so let\u2019s get right to it. <\/p>\n<p class=\"tag-border-left\">HAPPENING TODAY-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The<\/strong> <strong><a target=\"_blank\" href=\"https:\/\/evautoshowonline.com\/\" style=\"\" rel=\"noopener\">EV Auto Show 2024<\/a><\/strong><strong> is on its second day today<\/strong> and wraps tomorrow. The event is bringing together key industry players, with more than 100 exhibiting companies from 20+ countries. You can sign up for the event <a target=\"_blank\" href=\"https:\/\/www.badge-registration.com\/CONS\/EVAUTO24\/Authenticate\" style=\"\" rel=\"noopener\">here<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>WEATHER- <\/strong>Riyadh\u2019s mercury will peak at 40\u00b0C, before dropping to a low of 28\u00b0C. Meanwhile, a cloudy Jeddah will see a high of 37\u00b0C, and a low of 31\u00b0C.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">PSA- <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt3\"><\/a> <strong>Updated standards for non-bottled drinking water in the Kingdom<\/strong> target public and private water providers, desalination plants, and networks, the Environment, Water and Agriculture Ministry <a target=\"_blank\" href=\"https:\/\/x.com\/MEWA_KSA\/status\/1835647422086680743\" style=\"\" rel=\"noopener\">said on X<\/a>. The <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/9\/1326.pdf\" style=\"\" rel=\"noopener\">new standards (pdf)<\/a> require monitoring water quality throughout production, transportation, distribution, and storage to ensure safety. Water must be devoid of substances harmful to public health and the environment, with the new regs setting standards for chemicals, trace elements, heavy metals, microbiology, and other contaminants. Moreover, the new guidelines mandate that all individuals have access to safe drinking water.<\/p>\n<p class=\"tag-border-left\"> WATCH THIS SPACE-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt1\"><\/a> <strong>#1- The Capital Market Authority has cleared Saudi\u2019s first Hong Kong-focused <\/strong><strong>ETF for<\/strong><strong> listing on <\/strong><strong>Tadawul, <\/strong>according to a <a target=\"_blank\" href=\"https:\/\/cma.org.sa\/en\/Market\/NEWS\/Pages\/CMA_N_3629.aspx\" style=\"\" rel=\"noopener\">statement<\/a>. The Albilad CSOP MSCI Hong Kong China Equity ETF is expected to launch on Tadawul by year-end, though no official timeline was disclosed. The story was also picked up by <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/asia\/saudi-arabia-approves-first-etfs-tracking-hong-kong-listed-equities-2024-09-17\/\" style=\"\" rel=\"noopener\">Reuters<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Another HK-focused ETF coming soon?<\/strong> Saudi Awwal Bank\u2019s SAB Invest is reportedly set to launch a second ETF tracking Hong Kong-listed equities before the end of 2024, <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-09-17\/saudi-etfs-tracking-hk-shares-seen-raising-nearly-1-billion\" style=\"\" rel=\"noopener\">Bloomberg<\/a> reports, citing sources with knowledge of the matter. SAB Invest and Albilad\u2019s ETFs are collectively expected to raise nearly USD 1 bn, the business information service says. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background:<\/strong> The move follows expectations that Saudi regulators would <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/0e9b16dd-6816-4f88-8019-3adb09d754c3\/this-morning:-saudi%25e2%2580%2599s-first-hong-kong-focused-etfs-to-debut-on-tadawul-by-year-end\" style=\"\" rel=\"noopener\">reciprocate Hong<\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/0e9b16dd-6816-4f88-8019-3adb09d754c3\/this-morning:-saudi%25e2%2580%2599s-first-hong-kong-focused-etfs-to-debut-on-tadawul-by-year-end\" style=\"\" rel=\"noopener\">Kong\u2019s move<\/a> to list a Saudi-focused ETF on the Hong Kong exchange in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/d68a2eb6-2f0d-4eb4-a958-a4eb0595b96f\/first%253cmark%253e-saudi%253c%2Fmark%253e-etf-in-asia-closes-up-on-day-one,-could-cross-list-in-mainland-china\" style=\"\" rel=\"noopener\">November of last year<\/a>, with the CSOP Saudi Arabia ETF growing to USD 1.3 bn since due to strong institutional interest. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">MARKET WATCH-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt2\"><\/a> <strong>#1- <\/strong><strong>EFG Hermes bullish on Tadawul in 4Q: <\/strong>Saudi equity markets are expected to have a healthy final quarter of the year, with volatility and fluctuations remaining \u201chealthy,\u201d EFG Hermes Head of Research Ahmed Shams El Din told <a target=\"_blank\" href=\"https:\/\/www.argaam.com\/en\/article\/articledetail\/id\/1754975\" style=\"\" rel=\"noopener\">Argaam<\/a> on the sidelines of the firm\u2019s annual conference in London. The fluctuations are driven in part by speculation about when the US Federal Reserve will pull the trigger on interest rate cuts, Shams El Din said, but noted that markets have broadly priced in the cuts. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Undervalued gems? <\/strong>Key sectors such as retail, building materials, and maritime transport remain relatively undervalued in the market and are poised to perform well, especially with a pickup in M&A activity and as population growth and megaprojects boost demand, Shams El Din said. Shams El Din <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/4bcd3720-29a6-4af8-bd2d-4f648523c1e2\/asset-managers-underweighting-saudi-are-missing-the-boat-%e2%80%93efg-hermes%e2%80%99-shams-el-din\" style=\"\" rel=\"noopener\">had previously told EnterpriseAM Saudi<\/a> that real estate and petrochemicals are also interesting sectors. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The market has sufficient depth to absorb more IPOs<\/strong> coming up in the pipeline, Shams El Din said. EFG Hermes\u2019 head of research also sees strong liquidity in the capital and sukuk markets, which positions them well to handle more offerings. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">!_InserLine_! <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Investors in the Middle East's equity capital markets are becoming more selective as <\/strong><strong>the region experiences a surge in transactions<\/strong>, EFG Hermes\u2019 co-CEO of investment banking Mohamed Ebeid told <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-09-17\/efg-hermes-says-gulf-investors-turn-picky-after-share-deal-rush\" style=\"\" rel=\"noopener\">Bloomberg<\/a> \u201cThere continues to be decent demand for ECM [transactions], but investors will become a little bit more selective.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The region has seen 31 ECM transactions worth USD 18.2 bn this year<\/strong>, surpassing last year's USD 11 bn, according to the news outlet. However, recent IPOs, like <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/f20466e7-fb45-4235-8cfd-2d27b3b9e797\/%253cmark%253efakeeh%253c%2Fmark%253e-care-shares-rise-10%2525-in-tadawul-debut\" style=\"\" rel=\"noopener\">Saudi\u2019s Fakeeh Hospital<\/a> and Abu Dhabi\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/8f0fda5b-4767-467e-a4af-d1219b067b0e\/abu-dhabi%25e2%2580%2599s-first-ipo-in-2024-tumbles-18%2525-on-market-debut\" style=\"\" rel=\"noopener\">Alef Education<\/a>, showed weaker debuts, highlighting a more selective approach amid tightening liquidity in GCC markets.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Government entities are now stepping in to support local equity funds<\/strong>, who are usually offered more allocations in regional transactions, according to Ebeid. <\/p>\n<div class=\"row\">\n<div class=\"col-md-12 subscribe-box-panel\">\n<div class=\"\">\n<div class=\"title\">\n<h4 class=\"fw-lighter mb-10\">   Get <b style=\"font-weight: 700\">Enterprise<\/b> daily   <\/h4>\n<\/p><\/div>\n<p class=\"mb-10\">The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n<p>  <a target=\"_blank\" href=\"ksa\/en\/user\/NewsLetters\" class=\"btn-green px-3 d-flex align-items-center\" rel=\"noopener\">Subscribe here<\/a>  <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>***<\/strong><strong>You\u2019re reading EnterpriseAM Saudi<\/strong>, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We\u2019re out Sunday through Thursday by 7am Riyadh time.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>EnterpriseAM Saudi is available without charge <\/strong>thanks to the generous support of our friends at Cenomi.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Want to send us a story idea<\/strong>, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on <a target=\"_blank\" href=\"mailto:climate@enterprisemea.com\" style=\"\" rel=\"noopener\">saudi@enterpriseAM.com<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>DID YOU KNOW <\/strong>that we also cover <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\" style=\"\" rel=\"noopener\">Egypt<\/a>, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\" style=\"\" rel=\"noopener\">the UAE<\/a>, the MENA <a target=\"_blank\" href=\"https:\/\/enterprise.news\/logistics\/en\" style=\"\" rel=\"noopener\">logistics<\/a> and  <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\" style=\"\" rel=\"noopener\">climate<\/a>  industries?<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Were you forwarded this email? <\/strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/user\/news-letters\" style=\"\" rel=\"noopener\">Tap or click here<\/a> to get your own copy of EnterpriseAM Saudi delivered every weekday.<br \/><strong>***<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">THE BIG STORY ABROAD- <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Our corner of the world is once again dominating the international news<\/strong><strong> cycle<\/strong> after an Israeli operation that killed nine and injured thousands in Lebanon \u201cmarked an extremely concerning escalation,\u201d <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/37af2899-3b61-42c8-b359-9ae2e66e9aa4\" style=\"\" rel=\"noopener\">according<\/a> to UN Special Coordinator for Lebanon Jeanine Hennis-Plasschaert.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>At around 3:30pm in Lebanon, pagers belonging to Hezbollah members began <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.wsj.com\/world\/middle-east\/hundreds-of-hezbollah-operatives-pagers-explode-in-apparent-attack-across-lebanon-cf31cad4?mod=hp_lead_pos1\" style=\"\" rel=\"noopener\">exploding<\/a><\/strong>, injuring more than 2.7k and <a target=\"_blank\" href=\"https:\/\/apnews.com\/article\/lebanon-hezbollah-israel-exploding-pagers-8893a09816410959b6fe94aec124461b\" style=\"\" rel=\"noopener\">killing<\/a> nine people \u2014 including a child. It is still unclear how Israel \u2014 which has not publicly admitted responsibility \u2014 conducted the attack, with some outlets reporting that they likely sabotaged supply lines and rigged the Taiwan-made pagers with small explosives prior to their arrival in Lebanon. An official from the armed group <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/dozens-hezbollah-members-wounded-lebanon-when-pagers-exploded-sources-witnesses-2024-09-17\/\" style=\"\" rel=\"noopener\">described<\/a> the attack as the \u201cbiggest security breach\u201d that Hezbollah has faced in the nearly year since 7 October. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>All eyes are now on what happens next<\/strong>, with Hezbollah vowing that Israel would receive \u201cfair punishment\u201d for the attack and an increasingly belligerent Netanyahu saying Israel will pursue a \u201cfundamental change in the security situation in the north\u201d as part of its war aims.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>WHILE IN AI NEWS- BlackRock and Microsoft are teaming up to bring us a USD 30 bn AI<\/strong><strong> investment fund <\/strong>to <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/4441114b-a105-439c-949b-1e7f81517deb\" style=\"\" rel=\"noopener\">invest in<\/a> rapidly scaling up the power and digital infrastructure to get ahead of potential bottlenecks in AI\u2019s growth trajectory.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The news comes as the US continues to throw up regulatory hurdles to stop AI tech from<\/strong><strong> getting into Chinese hands, <\/strong>with Microsoft <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/bb9ed20e-8e95-4808-a37c-7a540ca4b056\" style=\"\" rel=\"noopener\">calling<\/a> yesterday for more \u201cclarity and consistency\u201d on US chip export controls to the Middle as the tech giant seeks to expand its collaboration with Abu Dhabi-based AI company G42. Meanwhile, over in Japan, policymakers are mulling a deal with the US that would <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/3fa44901-33e4-4ab4-9f7b-efe1575a6553\" style=\"\" rel=\"noopener\">curb chip exports to China<\/a> and prevent Japanese tech companies from falling afoul of new US export controls \u2014 though potentially at the cost of Chinese retaliation.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\"> CIRCLE YOUR CALENDAR-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a target=\"_blank\" href=\"https:\/\/www.smartcitiessaudiexpo.com\/\" style=\"\" rel=\"noopener\">Smart Cities Saudi Expo 2024<\/a><\/strong><strong> runs from 24-26 September<\/strong> at the Riyadh International Convention & Exhibition Center.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The two-day <\/strong><strong><a target=\"_blank\" href=\"https:\/\/kbltcongress.com\/\" style=\"\" rel=\"noopener\">Kingdom Business and Luxury Travel Congress<\/a><\/strong><strong> will kick off on Wednesday,<\/strong><strong> 25 September<\/strong>, at the Crowne Plaza Riyadh RDC Hotel and Convention.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The<\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.saff.com.sa\/en\/championship.php?id=263\" style=\"\" rel=\"noopener\">Saudi Women\u2019s Premier League<\/a><\/strong><strong> kicks off on Friday, 27 September <\/strong>with the return of Al Nassr, Al Ahli, Al Shabab, Al Qadisiyah, Al Hilal, Al Ittihad and Eastern Flames. New to the League are AlUla, Al Taraji, and Al Amal.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The three-day <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.glforum.org\/\" style=\"\" rel=\"noopener\">Global Logistics Forum<\/a><\/strong><strong> will kick off on Saturday, 12 October<\/strong> at Riyadh\u2019s King Abdullah Financial District. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Industrial Hackathon 2024 is scheduled for 10-11 October<\/strong>, the Saudi Industrial Development Fund spokesperson <a target=\"_blank\" href=\"https:\/\/x.com\/SIDFSA_SP\/status\/1827655383751569577\" style=\"\" rel=\"noopener\">said on X<\/a>. The hackathon will pit top Saudi talents against each other to showcase their design, production and sustainability solutions for the local manufacturing sector. Contestants will compete for a pool worth a combined SAR 1.4 mn. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The two-day <\/strong><strong><a target=\"_blank\" href=\"https:\/\/globalproptechsummit.com\/register.php\" style=\"\" rel=\"noopener\">Global PropTech Summit<\/a><\/strong><strong> is happening on 27 October<\/strong> at the M\u00f6venpick Hotel, Riyadh. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Pakistan Investment Summit and Smart Expo will kick off <\/strong><strong><a target=\"_blank\" href=\"https:\/\/islamabadpost.com.pk\/jeddah-to-host-pakistan-investment-summit-in-nov-2024\/#google_vignette\" style=\"\" rel=\"noopener\">2 November<\/a><\/strong> at the Jeddah Hilton Hotel.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PLUS: EFG Hermes\u2019 Shams El Din sees more growth prospects for Tadawul<\/p>\n","protected":false},"author":1,"featured_media":89755,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2540],"tags":[3099,2419,547,10,3098,9],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-89754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-aluminum-bahrain-alba","tag-capital-markets","tag-efg-hermes","tag-enterpriseam-ksa","tag-saudi-mining-maaden","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"1cf3f711-98fc-4a2d-84bd-56f08d4dd5f9","order":"2","is_powered_by":false,"story_type":"4","photo_url":"https:\/\/ent.news\/2024\/5\/266.jpg","photo_position":"above","homepage_title":"","full_issue_title":"THIS MORNING: Capital Market Authority clears first Hong Kong-focused ETF to list on Tadawul","related_issue":[89752],"teaser":"PLUS: EFG Hermes\u2019 Shams El Din sees more growth prospects for Tadawul","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/9\/.e727710a-2b95-442c-a0ce-0a7ce7725ca3.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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