HK, Abu Dhabi bourse operators seek to deepen capital market ties

The agreement underscores increasing financial ties between the Asian financial hub and the Middle East

Hong Kong Exchanges and Clearing (HKEX) said on Thursday (Sep 18) it had entered an agreement with the Abu Dhabi Securities Exchange (ADX) to deepen collaboration and enhance connectivity between their capital markets.

The agreement underscores increasing financial ties between the Asian financial hub and the Middle East, aiming to foster global capital market integration and unlock new investment opportunities.

Under the agreement, the bourse operators will explore initiatives in financial products such as exchange-traded funds, and environment, social, and governance (ESG)-related products, and stimulate cross-listings, while looking at ways to better connect the two financial markets.

The move is part of HKEX’s broader ambitions to attract offshore listings to bolster its global credentials and expand into the Middle East. Funds in the region have also become key investors in Hong Kong IPOs, highlighting growing cross-market engagement.

Last year, the HKEX added ADX and the Dubai Financial Market in the United Arab Emirates as “Recognised Stock Exchanges”. It is also opening a representative office in Saudi Arabia, the world’s largest crude oil exporter and the biggest economy in the Middle East.

“By working closely with ADX, we aim to unlock new investment opportunities, strengthen market infrastructure, and meet the evolving needs of global issuers and investors,” HKEX chief executive Bonnie Y Chan said in a statement. REUTERS