Azimut Group and China Universal Asset Management unite to bridge UAE and China markets

IGNITES ASIA: Italian asset manager Azimut Group has partnered with China Universal Asset Management to introduce an exchange-traded fund (ETF) listed in Abu Dhabi, along with a second ETF in Shanghai. This initiative aims to provide investors from China and the United Arab Emirates (UAE) with access to each other’s equity markets.

Azimut will launch an ETF on the Abu Dhabi Securities Exchange that will invest in China Universal’s existing Shanghai-listed ETF, which tracks the CSL A500 Index, as confirmed to the Financial Times. Conversely, China Universal AM will create an ETF for the Shanghai Stock Exchange that will channel investments into a separate Abu Dhabi-listed ETF that Azimut plans to establish, focusing on publicly traded companies in the pan-Arab region.

Azimut anticipates launching the ETF tracking Arab companies by the third quarter of 2025, based on an index that includes large, liquid stocks, as stated by a spokesperson to Ignites Asia.

In recent years, China has intensified its financial collaboration with Middle Eastern nations, utilizing ETFs as a means to facilitate cross-border capital flows and strengthen corporate relationships. This move aligns with China’s objective of conveying its intent to further open up its financial sector.

Additionally, in August, the Shenzhen Stock Exchange and the Dubai Financial Market signed a memorandum of understanding (MoU) to encourage cross-border investments between China and the UAE and to explore collaboration on products like ETFs. Following this, the Shanghai Stock Exchange also announced in December that it had signed an MoU with the Qatar Stock Exchange to investigate potential cooperation in areas such as ETFs, data, and index products.