Wall Street: China races to invest in Saudi stocks

Chinese investors are scrambling to invest in funds focused on Saudi stocks, The Wall Street Journal revealed. The newspaper said in a report that Chinese investors’ enthusiasm for the Saudi market comes at a time when Chinese stocks are struggling to attract investor interest, noting that… Chinese investors are scrambling to track new funds focused on Saudi stocks, indicating their strong desire to invest overseas at a time when the local market is declining.

She added: “Two exchange-traded funds focused on large Saudi companies such as Saudi Aramco and National Bank of Saudi Arabia rose as much as 30% in their first three days of trading after launching this week, and their assets briefly traded at a 20% premium to net value, according to market data providers.”

Recently, Saudi Arabia and China held a roundtable meeting with the slogan of “strengthening Saudi-China financial cooperation, infrastructure connectivity, and serving China’s Belt and Road Initiative and Saudi Vision 2030.” The trade volume between the two countries exceeded $100 billion last year.

The two countries seek to explore opportunities for cooperation and co-financing of Vision Projects and the Belt and Road Initiative in various sectors in the Kingdom of Saudi Arabia, and exchange knowledge on best practices in risk management, asset portfolios, liquidity and other common areas.