The China Southern CSOP Saudi Arabia ETF Shines on Its Debut, Opening with a Strong Surge and Subsequently Hitting the Limit-Up

As the Chinese stock market continues to perform weakly, QDII ETFs have gained favor among Chinese investors. On its first day of listing, the China Southern CSOP Saudi Arabia ETF hits the 10% daily up-limit.

The underlying ETF is the China Southern CSOP Saudi Arabia ETF. Interestingly, the energy sector does not constitute a major portion of this ETF's holdings; instead, the financial sector accounts for over 40% of the total holdings.

Due to the free float ratio restrictions, Saudi Aramco's weight in the ETF is relatively low. The advantage of the Saudi financial sector lies in the cost efficiency of lending and deposit services under the Islamic financial system, along with the injection of oil revenues, which enhances the safety and capital adequacy of Saudi banks.