Morgan Stanley said that with the inauguration of the new chairman of the Saudi Capital Markets Authority, the country's proposed rule reform to liberalize the upper limit of foreign shareholding has once again become the focus of the market. Strategist Matthew Nguyen pointed out in a report released on Monday that the window for implementing the foreign shareholding limit reform this year is constantly narrowing. For MSCI to include the impact of the foreign shareholding limit adjustment in the November index evaluation, the relevant policy must take effect before the corresponding price cutoff date, which may fall on any of the last 10 trading days in October. “Even if the policy takes effect as scheduled, index compilers may delay or implement adjustments in stages.” The bank estimates that if the upper limit of foreign shareholding is relaxed to 75%, the Saudi stock market will welcome $4.3 billion in passive capital inflows; if this restriction is completely lifted, it will flow in $7.4 billion in passive capital.

Morgan Stanley said that with the inauguration of the new chairman of the Saudi Capital Markets Authority, the country's proposed rule reform to liberalize the upper limit of foreign shareholding has once again become the focus of the market. Strategist Matthew Nguyen pointed out in a report released on Monday that the window for implementing the foreign shareholding limit reform this year is constantly narrowing. For MSCI to include the impact of the foreign shareholding limit adjustment in the November index evaluation, the relevant policy must take effect before the corresponding price cutoff date, which may fall on any of the last 10 trading days in October. “Even if the policy takes effect as scheduled, index compilers may delay or implement adjustments in stages.” The bank estimates that if the upper limit of foreign shareholding is relaxed to 75%, the Saudi stock market will welcome $4.3 billion in passive capital inflows; if this restriction is completely lifted, it will flow in $7.4 billion in passive capital.