(Yicai) Sept. 10 -- CSC Financial, trading as China Securities, has signed a memorandum of understanding with the Ministry of Investment of the United Arab Emirates to "jointly open up a two-way channel with Middle East capital markets" amid the proportion of sovereign wealth funds from the region taking part as cornerstone investors in Hong Kong initial public offerings doubling over the past two years, according to Liu Cheng, the chairman of the Chinese investment bank.

The share of Middle East SWF cornerstone investors participating in Hong Kong IPOs increased to almost 40 percent early this year from less than 20 percent two years ago, Liu Cheng said at the 2026 Global Investors Conference held in Hong Kong on Sept. 8. The Central Bank of the UAE has connected to the city's Central Moneymarkets Unit, while the Hong Kong Monetary Authority and the Saudi Public Investment Fund have set up a USD1 billion cooperation fund, he added.

The capital market of Hong Kong has been relatively active this year, Liu noted, adding that the city's economy grew 5.1 percent in the six months ended June 30, the strongest first-half growth in five years. Local IPO fundraising surged 92 percent from a year earlier, ranking second worldwide, while more than 500 companies are awaiting to go public, he pointed out.

Hong Kong's unique role as a "super connector," "super value enhancer," and "super partner" has become increasingly prominent amid global changes, he stressed. China Securities will "deeply participate in the connectivity of capital markets along the Belt and Road," striving to become a bridge connecting China with markets in the Middle East and Southeast Asia, he noted.

Hong Kong's cross-border wealth under management increased almost 11 percent to USD2.9 trillion last year from the previous year, He Haifeng, global chief economist of China Securities, said at the conference, citing a report by Boston Consulting Group. "The data shows that Hong Kong has surpassed Switzerland for the first time to become the world's largest cross-border wealth management center."

More Chinese mainland capital will flow into Hong Kong in the coming years, potentially further widening the gap between Hong Kong and Switzerland in the scale and growth rate of cross-border wealth, He added.

Editor: Martin Kadiev