Hong Kong Debuts Islamic Bond ETF
As part of ongoing efforts to strengthen Middle Eastern links, Hong Kong has launched its first-ever Islamic bond ETF.
Hong Kong has listed its first-ever Islamic bond – also known as sukuk – exchange-traded fund (ETF), according to a statement by the Securities and Futures Commission (SFC).
«Strengthening collaboration with the Middle East is pivotal to Hong Kong’s efforts to expand its worldwide network of trusted partners amidst new global challenges,» said SFC CEO Julia Leung. «This enhanced linkage not only allows investors in both Hong Kong and Saudi Arabian markets to access each other’s assets, but also gives fresh impetus to the city’s role as a super-connector on the China-Middle East Corridor.»
The ETF listing is part of broader efforts by Hong Kong to build more ties to the Middle East, including a Memorandum of Understanding to facilitate cross-border investment initiatives between the city and Saudi Arabia. The ETF was launched by Premia Partners and BOCHK Asset Management, the fund arm of Bank of China. It will track the performance of the iBoxx Tadawul Government and Agencies Sukuk Index.
