(Bloomberg) — Two exchange-traded funds focused on Saudi Arabian stocks that debuted today in Shanghai and Shenzhen give Chinese investors an option to bet on equities in the oil rich nation as both countries strengthen ties.
The China Southern Asset Management CSOP Saudi Arabia ETF QDII listed in Shenzhen after raising 634 million yuan ($87 million). A second fund, the Huatai-PineBridge CSOP Saudi Arabia ETF QDII, began trading in Shanghai after raising 590 million yuan. Shares of both funds, which saw a high volume of trade, ended the session at their first-day price limit.
The debuts are indicative of deepening investment links between China and Saudi Arabia as they diversify from the West. The main exchanges in Hong Kong and Riyadh co-organized a conference in May in the Asian city where officers highlighted mutual interest in offering more products to Chinese and Middle Eastern investors.
Investments by the Saudi sovereign…
