Media365
Hong Kong is boosting financial ties with the Middle East by signing initial accords with the United Arab Emirates (UAE) to enable mutual recognition of funds and cross-listings of exchange-traded funds (ETFs) on the Abu Dhabi Securities Exchange.
Hong Kong’s market regulator, the Securities and Futures Commission (SFC), and the UAE’s Securities and Commodities Authority signed a memorandum of understanding on Wednesday to facilitate the mutual recognition of funds.
This would allow public investment products to be distributed seamlessly in both markets, marking Hong Kong’s first such arrangement with a Middle Eastern market and the UAE’s first outside its region.
Julie Leung Fung-yee, CEO at the SFC, said the latest regulatory cooperation opened a new chapter.
“It not only reaffirms the city’s standing as a preferred fund domicile, but also highlights its role as a premier gateway between mainland China and the Middle East, especially in a fast-evolving global landscape”, said Julia Leung Fung-yee, CEO of SFC.
The SFC has previously entered into mutual recognition arrangements with mainland China and ten other overseas financial regulators, including Ireland in May this year.
