Financial Secretary Paul Chan on Wednesday said the debut of Saudi Arabia's first exchange-traded funds (ETFs) that track Hong Kong-listed equities will strengthen cooperation between the two places.

Chan's remark came as trading of such ETFs began on the Saudi stock exchange.

Issuer Albilad Capital and its partner CSOP Asset Management said the trading of the product raised more than US$1.2 billion at the start.

Speaking to reporters in Riyadh after the listing ceremony, Chan said the ETFs open doors for Middle Eastern investors to capital markets beyond the SAR.

"Middle Eastern investors can gain easy access to our Hong Kong markets. However, this investment extends beyond just Hong Kong. As you know, more than 70 percent of the market value of listed companies in Hong Kong comes from the mainland. Therefore, investing in the Hong Kong market is equivalent to investing in key sectors of the mainland," he said.

Asia's first ETF covering Saudi Arabian stocks made its debut on the Hong Kong Stock Exchange last November. (Additional reporting by Reuters)