It is reported that China is pitching a dual listing for Saudi Arabia oil giant Saudi Aramco that would put its shares on both the Hong Kong and Saudi Arabia exchange in return for anchor investments from Chinese funds.

ANBOUND's research team is of the view that there are many considerations that lead to Chinese government’s decision to pitch Saudi Aramco’s listing in Hong Kong.

Firstly, it helps to consolidate Hong Kong status as international financial center.

Secondly, it strengthens the relationship with Saudi Arabia as the listing of the core company can intensify the lock-in effect.

Thirdly, it draws the world’s largest oil producing country, Saudi Arabia closer to China, the world’s largest consumer of crude oil.

The biggest "chip" that China has now is still the economy and the relationship with the key countries can be deepened through economic interests.