Albilad Capital offers Albilad CSOP MSCI Hong Kong China Equity ETF

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Albilad Capital announced the issuance of the Capital Market Authority's approval for the public offering of units of the " Albilad CSOP MSCI Hong Kong China Equity ETF”

This fund is the first of its kind in Saudi Arabia, investing in the largest Chinese companies listed on the Hong Kong Exchange that comply with the Sharia Committee's guidelines at Albilad Capital.

Mr. Zaid AlMufarih, CEO of Albilad Capital, stated that this fund adds a new and unique investment option to the ETF sector, enhancing the depth of the Saudi ETFs’ sector. It also provides an opportunity to engage with the fastest-growing emerging market in the world, known for its massive economy, which is the second largest in the world and has continued to grow at an accelerated pace. Moreover, the Chinese market features low correlation with major global markets, offering a unique tool for investment diversification.

He also mentioned that the fund provides access to the largest Chinese companies compliant with Sharia standards at competitive fees, in collaboration with one of the leading ETF issuers in Hong Kong, CSOP Asset Management Limited. This comes at a time when the economic relationship between the Kingdom of Saudi Arabia and China is being strengthened and investment ties are deepening. This listing is a significant addition for Albilad Capital, which leads in pioneering ETFs; this being their sixth listing, joining their unique and specialized collection of ETFs. Albilad Capital's ETFs constitute 70% of the total ETFs in the Saudi market, with unit holders of Albilad Capital's ETFs making up 60% of the total unit holders in the Saudi market.

He added that Albilad Capital extends its profound thanks to the Capital Market Authority for its efforts in supporting the ETF sector and its continuous cooperation in supporting financial market institutions to offer diverse investment products to the Saudi market and its investors, while striving to develop related regulations and laws. The growth in the number of ETFs in the Saudi market has reached 33% since 2020, with a 240% increase in subscribers.

The fund will follow a passive investment strategy by mirroring the performance of the "MSCI Hong Kong China Connect Select Index," which reflects the performance of the largest Chinese companies listed in Hong Kong based on market capitalization. The index provider, MSCI, periodically evaluates the index components comprehensively by applying business activity screening, financial screening, and ensuring compliance with Sharia guidelines.

It's noted that ETFs are investment funds with variable capital, tracking a specific index, divided into equal units traded in the financial market during trading sessions. These funds combine features of both mutual funds and stocks, typically characterized by low costs and diversification.