China Investors Pile Into Saudi ETFs as Two Nations Grow Closer

July 28, 2024--Both ETFs trade at sizable premiums to their net asset values
Saudi ETFs have competitive advantage in yields: Guotai Junan
Chinese investors are pouring money into two new exchange-traded funds tracking Saudi Arabian shares as the dismal performance of local equities supercharges demand for overseas assets.

The Saudi-focused ETFs enjoyed a bumper start when they debuted in Shanghai and Shenzhen on July 16 with both jumping by the daily 10% limit on their first two trading days. They were then suspended for part of July 18 after their managers notified the exchanges that the premiumm of their share price over their net asset value had become excessive.