China and Saudi Arabia are in talks to establish a groundbreaking exchange-traded fund (ETF) cross-listing initiative, aiming to strengthen their financial ties amidst improving diplomatic relations.
The talks, currently in early stages, represent a significant step for both countries in expanding cooperation beyond traditional sectors like energy, security, and technology.
The discussions involve the Shenzhen Stock Exchange, one of China’s major bourses, and the Saudi Tadawul Group, which operates the Saudi Stock Exchange.
The proposed program, known as “ETF Connect,” would enable ETFs to be listed on each other’s exchanges.
For China, this initiative would mark the first ETF Connect partnership beyond East Asia, demonstrating its commitment to opening up its extensive financial markets to international investors.
The potential cross-listing agreement could facilitate greater investment flows between the two nations and foster deeper financial integration. As both countries seek to diversify their economies and enhance financial cooperation, this move could lead to further opportunities for collaboration in the future.
