On October 30th, two ETFs investing in Hong Kong stocks are set to be listed on the Saudi stock exchange, with one of them having an initial size of over $1.2 billion, making it the largest ETF in the Middle East region. On October 29th, Southern Fund Management disclosed that the Albilad CSOP MSCI Hong Kong China Equity ETF will be listed on the Saudi stock exchange. This is the first ETF in Saudi Arabia investing in the Chinese Hong Kong stock market, and with an initial size of over $1.2 billion, it will be the largest ETF in the Middle East region upon its listing. It is understood that the fund will invest no less than 95% of its assets in the Southbound Eastbound MSCI Hong Kong Connect Select ETF listed on the Hong Kong Stock Exchange. The ETF adopts a passive investment strategy, tracking the performance of the MSCI Hong Kong Connect Select Index. The index selects stocks that are among the top 30 by total market value in the MSCI China Index and MSCI Hong Kong Index, listed on the Hong Kong Stock Exchange, and compliant with Islamic investment principles. On the same day, Hang Seng Bank also revealed that its subsidiary asset management company, Hang Seng Investment Management Limited, will cooperate with SAB Invest, a subsidiary of Saudi Awwal Bank, to launch a new connection fund in Saudi Arabia that invests entirely in the Hang Seng Index Fund. Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region Government, stated that after these two Hong Kong ETFs are listed locally, more two-way financial products are expected to be introduced, facilitating the flow of funds between the two regions, attracting more Middle Eastern capital to the Hong Kong market, and familiarizing more local investors with the Hong Kong market. In fact, expanding into the Middle Eastern market has been an important goal of the Hong Kong capital market in recent years. Hong Kong Chief Executive John Lee Ka-chiu also emphasized in the recently released 2024 Policy Address that the listing of ETFs tracking Hong Kong stock indices on stock exchanges in the Middle East should be implemented, attracting local funds to allocate to Hong Kong stocks, in order to attract new overseas capital and optimize the Hong Kong securities market.