The two feeder funds rose 7.1 per cent and 5.6 per cent in Shenzhen and Shanghai, respectively, after raising a combined US$170 million.
Two exchange-traded funds (ETFs) that track Saudi Arabia’s biggest companies including Saudi Aramco made winning debuts in mainland China on Tuesday, underscoring the strengthening ties between financial markets in China and the Middle East.
The two feeder funds, managed by China Southern Asset Management and Huatai-PineBridge Investment, rose 7.1 per cent and 5.6 per cent in Shenzhen and Shanghai, respectively, after raising a combined 1.2 billion yuan (US$170 million), outperforming the CSI 300 Index, which added 0.2 per cent.
The cross-listed ETFs invest in the Saudi market through the master fund: Hong Kong-domiciled CSOP Saudi Arabia ETF. They operate under the Qualified Domestic Institutional Investor (QDII) programme, which allows institutional investors to invest in foreign securities within a prescribed quota.
