Core Points - The Hong Kong Monetary Authority (HKMA) and Saudi Arabia's sovereign wealth fund will establish a US$1 billion fund aimed at assisting companies from Hong Kong and the Greater Bay Area in expanding into Saudi Arabia [1][3] - The fund is set to be launched in October 2024, following a memorandum of understanding signed in Riyadh [3][6] - The initiative is expected to support the development of non-oil economic sectors in Saudi Arabia [1] Investment Focus - The fund will target investments in sectors such as manufacturing, renewables, fintech, and healthcare [4] - It aims to facilitate the localization of Chinese companies in Saudi Arabia that are looking to expand internationally from Hong Kong and other cities in the Greater Bay Area [4] Market Context - There is a growing trend of Chinese companies seeking international expansion, particularly in the context of the Gulf Cooperation Council's commitment to invest US$100 billion in renewable energy by 2030 [5] - A notable increase in stock offerings by Chinese renewable-energy companies in Hong Kong has been observed, including a US$5.3 billion listing by Contemporary Amperex Technology and a US$1.8 billion share sale by Seres Group [7]