DBS Bank: Hong Kong can help the AIIB raise CNH and green bonds to promote diversification of local asset allocation.

DBS Hong Kong Economic Research Department stated that as cooperation between the Gulf Cooperation Council (GCC) and China deepens, Hong Kong can play a role as a super connector to help the GCC issue CNH and green bonds, enabling asset allocation in the Saudi Arabia asset management market to diversify from real estate (36%) and stocks (34%). Recently, DBS Hong Kong Economic Research Department published "New Global Capital Pathway: Convergence of the GCC and Asia", with DBS Hong Kong Chief Economist Chi Mo indicating that global green transformation and economic slowdown have led to income uncertainty and fiscal deficits, increasing the demand for investment brought by economic reform and diversification, hence the need to issue bonds to support economic transformation. Chi Mo pointed out that on the Chinese side, GCC investments have continuously grown from 2014 to 2024, with the energy sector leading at 62%. DBS Hong Kong Senior Economist Zhou Hongli stated that in terms of RMB internationalization, CNH bonds, and RMB stock trading, Hong Kong's financial institutions can help the GCC issuers raise CNH and green bonds, assisting in diversifying asset allocation in the Saudi Arabia asset management market. Zhou Hongli mentioned that from 2015 to 2024, total management assets in the Saudi Arabia asset management sector have steadily increased by 12% annually, reaching $290 billion in the first quarter of 2025. The GCC and Hong Kong have listed their ETFs on each other's platforms, with the trading volume of a single ETF amounting to approximately $10-20 million from the beginning of the year until now.