Central Asia trip set to deliver

Chief Executive John Lee will lead a delegation to Kazakhstan and Uzbekistan in June, a move the investment industry believes will open new markets for Hong Kong businesses and boost regional economic links.

Chief Executive John Lee will lead a delegation to Kazakhstan and Uzbekistan in June.

Asset management company representative Cliff Zhang, who is part of the delegation, has previously accompanied the Chief Executive on two visits to the Middle East. His company signed an agreement with Oman last September to launch that country's first energy transition fund.

Mr Zhang said several collaborations are expected to be announced during the Central Asia trip, including joint investments with the Oman Investment Authority.

He noted that Middle Eastern governments and institutions are optimistic about the vast potential of the Central Asian market. He emphasised that Hong Kong can serve as a vital bridge connecting the Chinese Mainland, the Middle East and Central Asia.

Asset management company representative Cliff Zhang(right).

“It is essentially leveraging the capital from the Middle East which has the desire and the interest to invest more in Central Asia which has the market and the market opportunities,” Mr  Zhang said.

“Countries of the Middle East need the Chinese and the Asian companies to bring their products, their technology, their services to those markets,” he added.

“That is where Hong Kong plays a role in connecting the dots, being a “super connector” and a “super value-adder” in bringing everybody together.”

Mr Zhang highlighted Central Asia’s unique economic advantages, emphasising its young population, abundant natural resources and strategic position between Asia and Europe.

While noting that the distinct strengths and investment landscapes of Central Asia and the Middle East cannot be directly compared, he sees significant opportunities ahead.

Mr Zhang said that Central Asia offers greater scope for co-operation, particularly across the real estate, energy and infrastructure sectors.

Asset management company representative Cliff Zhang.

“I think Central Asia is a gold mine that is at its early stage of development and opening up,” he said.

Mr Zhang added that Central Asia requires more technology and investment from partners in infrastructure and property development, for example.

“I definitely see that the demand in the property space is a very real one,” he noted. “That is also one of the areas where we think Hong Kong enterprises have a very strong capability, given Hong Kong is also one of the major property markets globally.”

Beyond housing, Central Asia’s demand for hotels, office buildings and shopping malls is rising rapidly.

Mr Zhang pointed out that major expanding cities such as Astana and Almaty in Kazakhstan, and Tashkent in Uzbekistan, are all keen to leverage Hong Kong’s expertise in urban planning and public transport management.

Hong Kong.

He added that Central Asia faces enormous investment needs for mineral and natural gas processing facilities while actively developing renewable energy sources.

At the same time, local demand for professional services such as finance and healthcare continues to grow.

Asked how to draw lessons from the Middle East, Mr Zhang observed that Central Asia’s predominantly Muslim population shares cultural ties with the Middle East.

He also stressed that establishing a local team is essential when entering new markets to accurately gauge policy directions and foster mutual trust. Having already set up an office in the Middle East, his company plans to adopt a similar model in Central Asia.

He added that this Central Asian delegation is the largest organised by the current-term Government, surpassing last year's Middle East mission, and features an increased presence of representatives from Chinese Mainland companies.

“This symbolises the further deepening of joint efforts to venture into the global market between the two,” Mr Zhang said.

Hong Kong.

A Mainland telecommunications operator that is engaged in digital development in Central Asia will sign a Memorandum of Understanding to provide services for a logistics centre during Chief Executive John Lee’s visit to Kazakhstan and Uzbekistan next month.

Chief Executive John Lee’s visit to Kazakhstan and Uzbekistan next month.

Mr Lee will lead a delegation to the two countries early in June.

The operator’s Head of Carrier Business Kevin Chan said he believes the Government’s official visit can help to deepen economic and trade exchanges with Central Asian countries.

“The local 5G development focuses on traditional consumer markets, while the enterprise service ecosystem is still evolving. We are going to give them our smart solutions through our logistics platform. On top of that, because we also have other projects happening in Central Asia, especially in the Kazakhstan region, they will be providing us with a logistics capability that they will make sure all the equipment and all our construction of these satellite base stations will be seamless.”

The operator’s Head of Carrier Business Kevin Chan .

In March, the company established its Global Intelligence Center in Hong Kong.

Mr Chan said that Hong Kong's role as a “super connector” and “super value-adder” provides unique strategic advantages for the firm’s expansion into Central Asia.

“Central Asian countries lack direct physical access to undersea cables. While Hong Kong has the world’s highest density network of submarine cable landing stations and international data exchange centres, the company utilises this advantage to seamlessly connect Central Asia’s terrestrial optical cable system to Hong Kong. This allows Central Asian data to reach major global economies via the shortest route.”

The operator’s Head of Carrier Business Kevin Chan .

He also highlighted the region’s young population and explosive demand for information, observing that these signal immense potential. For Central Asia, digital services also contribute to local development.

In addition to making specific local investments, the operator also works with the Hong Kong SAR Government’s GoGlobal Task Force to facilitate the globalisation of Mainland telecoms equipment, technical standards and service solutions.

Mr Chan pointed out that Central Asia only launched 5G in 2023, while the 5G market in the Chinese Mainland is relatively mature.

“As the Central Asian region has more mining industries, the company hopes to drive local enterprises to utilise 5G services with the Mainland’s smart mining solutions.”

Moreover, the company hopes to link the Greater Bay Area, Central Asia and Europe by constructing cross-border digital economy and logistics networks and developing opportunities along Belt & Road Initiative countries and regions.

Hong Kong.