The Saudi Public Investment Fund (PIF) has signed preliminary agreements worth up to $50 billion with six Chinese financial institutions, according to Bloomberg. This move is seen as the latest example of the deepening relationship between the two countries.

The American news agency reported that the deals were struck to boost two-way capital flows through both debt and equity, according to a statement released by the $925 billion PIF.

The agreements include Memoranda of Understanding (MoUs) with the Agricultural Bank of China, Bank of China, China Construction Bank, China Export & Credit Insurance Corporation, China Export-Import Bank, and Industrial and Commercial Bank of China.

While the United States remains Saudi Arabia's most important economic and strategic partner, the Kingdom has been drawing closer to China in recent years.

Bloomberg cites several indicators of this growing relationship, including the recent visit of PIF Governor Yasir Al-Rumayyan, a key aide to Crown Prince Mohammed bin Salman and a leading figure in Saudi-Chinese relations, who led a large delegation to Beijing in July and met with Chinese Vice Premier He Lifeng.

This visit included a series of announcements between the PIF and some of China's largest renewable energy manufacturers. Additionally, China's largest steel producer recently doubled its investment in a project in Saudi Arabia to $1 billion.

Meanwhile, Chinese investors have poured money into two new exchange-traded funds (ETFs) tracking Saudi stocks, with demand for foreign assets increasing due to the poor performance of domestic stocks.