Saudi Arabia, Hong Kong to Establish Fund to Track Stock Indices

CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
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Saudi Arabia, Hong Kong to Establish Fund to Track Stock Indices

CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)

The first global edition of the Capital Markets Forum, organized by the Saudi Tadawul Group and the Hong Kong Exchanges and Clearing Limited (HKEX), kicked off in Hong Kong on Thursday, in the presence of over 650 people from around the world, including financial leaders, investors and representatives of regulators and enterprises.
The forum highlights the Hong Kong stock exchange operator’s latest strategy to attract new investors, with the aim to replace stockholders from the United States and Europe who may be deterred from doing business in China at a time of rising geopolitical tensions. Last month, the country's securities regulator said that it would encourage more companies to hold IPOs in the city.
The forum discusses important investment prospects through global partnerships and the means to exploit investment opportunities in the Kingdom and China, as well as studying future investment portfolios.
At the opening of the forum, the CEO of the Saudi Tadawul Group, Khalid Al-Hussan, said that the decision to host the Capital Markets Forum in Hong Kong demonstrates the growing relationship between Saudi Arabia and Asia, adding that the event would constitute a major bridge for investors from the two countries and pave the way for a more integrated system of global capital markets.
“The convergence between Hong Kong’s technological development and the Kingdom’s ambitious economic diversification enables a new era of knowledge exchange and cooperation that extends beyond the capital markets,” he stated.
Al-Hussan explained that during the forum, more than a thousand investors from listed companies and financial industry leaders will gather to explore challenges and prospects in the field of sustainability, innovation, and global investment trends.
For her part, Hong Kong Exchanges & Clearing Ltd. CEO Bonnie Chan said that she expects large initial public offerings (IPOs) to return to the city with the improvement of basic conditions and the support of Chinese regulators.
In her speech during the opening ceremony, she said that the Hong Kong Stock Exchange received more than 100 new listing applications this year, with activity rebounding, especially after the support measures taken by China.
Hong Kong has returned to the radar of global investments, after the China Securities Regulatory Commission (CSRC) announced last month that it would facilitate IPOs in Hong Kong by leading Chinese companies. The regulatory body also announced the expansion of the cross-border investment scheme to strengthen the city’s position as an international financial center.
The new measures began to attract money flows into the market, and trading value rose, Chan underlined, which she said created a more favorable environment for companies to launch their IPOs.
The Hong Kong Stock Exchange has had a difficult time in recent years. The faltering Chinese economy and increasing disputes between Beijing and Washington have exhausted investor interest in China-linked stocks.
Meanwhile, Hong Kong Deputy Financial Secretary Michael Wong said in a statement on Thursday that Hong Kong and Saudi Arabia are exploring the creation of an exchange-traded fund (ETF) tracking Hong Kong indices.
He added that the Hong Kong government is currently working with several financial institutions to develop the ETF.
Wong also reaffirmed Hong Kong’s commitment to its partnership with Saudi Arabia, noting that Cathay Pacific Airways is expected to re-launch direct passenger flights between Hong Kong and Riyadh.



Gold Drops Nearly 2% on Profit-booking, Trump's Treasury Secretary Pick

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Drops Nearly 2% on Profit-booking, Trump's Treasury Secretary Pick

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold dropped nearly 2% on Monday, weighed down by profit-taking after a five-session rally, with further pressure from the announcement of fund manager Scott Bessent as the next US Treasury secretary.
Spot gold was down 1.8% at $2,664.53 per ounce, as of 0619 GMT, after declining more than 2% earlier in the session. Bullion had hit its highest since Nov. 6 earlier in the day.
US gold futures shed 1.7% to $2,666.40.
Gold's five-session rally has paused due to some profit-taking and Donald Trump's pick of Bessent as the next US Treasury secretary, hinting at tempered use of tariffs and easing US-China trade uncertainty, said IG market strategist Yeap Jun Rong.
President-elect Trump has floated the idea of a 60% tariff on Chinese goods and at least a 10% levy on all other imports.
Gold is considered a safe investment during times of economic and political uncertainty.
Investors are also awaiting minutes of the Federal Reserve's November meeting, GDP data (first revision), and core PCE figures, all due this week.
Traders currently see a 56% chance of another 25-basis-point rate cut in December, compared to 62% last week, according to the CME Fedwatch tool.
Recent less dovish signals from US policymakers suggest any unexpected rise in inflation could strengthen expectations of a rate hold in December, Rong said.
Higher interest rates tend to make gold less appealing, as they yield no interest.
Some Fed policymakers last week expressed concerns that inflation progress may have stalled, advocating for caution, while others emphasized the need for continued rate cuts.
On the geopolitical front, Hezbollah fired heavy rockets at Israel on Sunday, following an Israeli airstrike that killed at least 29 in Beirut. There were reports of damage near Tel Aviv.
Spot silver fell 2.2% to $30.63 per ounce, platinum was down 1.2% to $952.00 and palladium slipped 1% to $998.88.