International law firm Simmons & Simmons has advised on Asia’s first-ever exchange-traded fund (ETF) tracking Saudi equities.
Debuting on the Hong Kong Stock Exchange (HKEX), the pioneering ETF is managed by CSOP Asset Management – one of the largest asset management firms in Asia.
A type of collective investment instrument, ETFs combine elements of mutual funds and stocks – providing access to specific markets. The new CSOP Saudi Arabia ETF will allow investors to trade a broad range of equities that are listed on the Saudi stock market directly on the HKEX, in Hong Kong dollars or Chinese RMB.
The new ETF tracks the performance of the FTSE Saudi Arabia Index, which holds a total market value of $276.8 billion as of October 2023.
Simmons’ asset management and investment funds team in Hong Kong provided legal counsel to CSOP on the launch of the project. The team was led by partner Ivy Yam, supported by associates Cara Chik and Candy Yick.
Commenting on the ETF launch, Ivy Yam said: “It was a pleasure to advise the CSOP team on this landmark, debut launch for Asia, which will enable greater investor access to one of the world’s fastest growing economies. Simmons’ leading asset management and investment funds team was able to draw on its experience and deep expertise to facilitate the successful opening of the ETF”