HKEX Expands into Central Asian Market, Signs MOU with Kazakhstan Exchange

The Hong Kong Exchanges and Clearing Limited (HKEX) announced on the 2nd that it has signed two Memorandums of Understanding (MOU) with the Astana International Financial Centre (AIFC) Authority of Kazakhstan and its subsidiary, the Astana International Exchange (AIX), to strengthen cooperation and enhance connectivity between the capital markets of Hong Kong and Central Asia. According to the announcement, the MOU signed with the AIFC Authority involves cooperation in areas such as climate transition, decarbonization, and green finance, including the development, financing, and implementation of sustainable aviation projects. Both parties will also collaborate on commodity market trading and ecosystem development, and support financing activities for early-stage mining projects. Regarding the MOU signed with the AIX, the two exchanges will cooperate to expand cross-border listing opportunities and promote dual listings. They will also establish a regular communication mechanism to understand market trends and evaluate further business cooperation opportunities. HKEX CEO Bonnie Chan stated, 'The importance of Central Asia in the global commodity and sustainable development sectors continues to rise. This multi-faceted cooperation will help global issuers and investors explore new opportunities. By exploring cross-border listings with AIX and collaborating with the AIFC Authority in green finance and commodities, we can further consolidate HKEX's role as a bridge for market connectivity while supporting the two-way flow of capital between Hong Kong and Central Asia.' Established in 2018, the AIFC is Kazakhstan's international financial hub and a gateway for capital flowing into Central Asia, the Caucasus, and the Eurasian Economic Union. Additionally, online information indicates that the AIX is an international exchange in Kazakhstan established in 2017, jointly invested and built by the AIFC Authority and the Shanghai Stock Exchange. The AIX aims to become an investment gateway for global investors to enter Kazakhstan and the Central Asian region, as well as a financial platform serving the 'Belt and Road' initiative. Meanwhile, Hong Kong Chief Executive John Lee is currently visiting the region. He led a delegation to Kazakhstan and Uzbekistan on May 31, with members including 40 representatives from Hong Kong's business and professional sectors and 30 representatives from mainland Chinese enterprises.