Opening remarks by SFST at Networking Luncheon hosted by Bank of China Kazakhstan in Kazakhstan
Following are the opening remarks by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Networking Luncheon hosted by Bank of China Kazakhstan in Kazakhstan today (June 1, Astana time):
Distinguished guests, ladies and gentlemen,
Salemetsiz be (Kazakh for "Hello")! With a shared vision of fostering closer collaboration, my delegation and I very much look forward to engaging with our counterparts in Kazakhstan, further deepening our connections, and gaining valuable insights into the opportunities presented by this dynamic market.
Trade relations with Kazakhstan
Kazakhstan stands at the very heart of Central Asia and has long served as a vital bridge between East and West along the ancient Silk Road. Today, it continues to play a pivotal role as a key gateway connecting Asia and Europe. With a population of over 20 million and strong economic fundamentals, Kazakhstan is entering a promising new phase of growth, with the International Monetary Fund seeing Kazakhstan's GDP (Gross Domestic Product) growth at 6.2 per cent last year.
We in Hong Kong attach great importance to building stronger ties with Kazakhstan and also the wider Central Asian region. Last year, the total merchandise trade between Hong Kong and Central Asia reached over US$320 million, representing a significant increase in recent years. This very much reflects not only growing economic advantages and exchanges, but also the stronger potential for deeper collaboration ahead.
Hong Kong's unique advantages
Just now, Mr Sun (Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited, Mr Sun Yu) mentioned three numbers: one, five and ten. And I am sure all of you as bankers or as corporate investors are all very well versed in numbers. So I will give you one more number to remember, which is also one.
As all of you may already know, Hong Kong has recently overtaken Switzerland and become the world's largest cross-boundary wealth management centre, having US$2.9 trillion booked in the city last year, and the amount is expected to continue growing by nine per cent on average annually at least up to 2030. What I want to highlight is not how we top the list but what we are offering and will be offering to the market to sustain this momentum.
As an international financial centre, Hong Kong is uniquely positioned to support Kazakhstan's continued development. Consistently ranked among the world's top financial hubs and leading IPO (initial public offering) markets, our deep and liquid capital markets, combined with a robust regulatory framework, offer enterprises from Kazakhstan efficient access to global capital and also a wide range of investment opportunities.
And we are not just complacent about being there. While the global economic landscape is experiencing restructuring with shifting momentum towards the East, Hong Kong has been gearing up to embrace the trend. We reform our listing framework to strengthen market vibrancy and competitiveness. We are also developing new growth areas like the commodities market, in particular gold. A central clearing system for gold, fully backed by the Government, is now in the pipeline for trial operation within this year. We are eyeing not only trading but also full-chain development spanning trading, storage, refinery, and financial instruments. Kazakhstan, as a major global player in the gold industry with rich reserves, surely will be an important partner of ours along our way to build a notable gold market in the Asia time zone.
We are particularly encouraged by the growing financial connectivity between our two sides as highlighted by Mr Sun. A notable example is the issuance of a dim sum bond in Hong Kong by the Development Bank of Kazakhstan, being an important milestone that highlights our role in facilitating cross-border capital flows. And not just equity but also bonds, in terms of issuance through Hong Kong, are most welcome.
Hong Kong is also advancing in areas such as green finance and financial innovation. Last year, the total green and sustainable debt instruments issued in Hong Kong exceeded US$76 billion, maintaining our leading position in Asia. As Kazakhstan pursues its sustainability and also green development agenda, we warmly invite enterprises from Kazakhstan to utilise our platform in Hong Kong to raise international capital and accelerate your transition to a greener economy.
The Belt and Road Initiative
Coming to Kazakhstan cannot be complete without really mentioning the Belt and Road Initiative, which was first mentioned by our President (President Xi Jinping) back in 2013. Kazakhstan has emerged as a key partner and an anchor for regional connectivity. In this evolving landscape, Hong Kong serves as a "super connector", linking the Chinese Mainland with global markets and also facilitating the efficient flow of capital, goods and services, and also particularly, ideas.
This creates a compelling synergy, in which Kazakhstan can serve as a gateway to Central Asia and beyond, while Hong Kong can provide a gateway to ASEAN (Association of Southeast Asian Nations) and other international markets, and to the Chinese Mainland, including the Guangdong-Hong Kong-Macao Greater Bay Area. Together, we can transform enhanced connectivity into concrete business opportunities.
Hong Kong's strengths extend beyond finance. Our world-class professional services, covering legal, accounting, engineering, risk management and more, are highly recognised internationally. These capabilities can provide valuable support for Kazakhstan's ambitious projects in infrastructure and urban development.
At the very heart of our partnership are people-to-people bonds. We are building a strong shared Belt and Road talent pool through scholarships, exchanges, and professional programmes that translate exposure into opportunity. Today, while we are here in Astana, there are actually over 500 Kazakhstani students studying in Hong Kong. These young people undoubtedly are forming an important bridge between our two communities.
Closing
I once again express my sincere appreciation to Bank of China Kazakhstan for hosting today's event. There is a beautiful proverb from Kazakhstani culture that perfectly captures why we are here today. It says, "Friendship is an inexhaustible wealth." I am sure our visit is the start of our enduring journey and bond. I am confident that through continued dialogue and collaboration, Hong Kong and Kazakhstan will unlock new opportunities and build an even stronger and also more prosperous partnership in the years ahead. Thank you.
Opening remarks by SFST at Networking Luncheon hosted by Bank of China Kazakhstan in Kazakhstan Source: HKSAR Government Press Releases
Opening remarks by SFST at Networking Luncheon hosted by Bank of China Kazakhstan in Kazakhstan Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video)
The Chief Executive, Mr John Lee, led a business delegation comprising representatives from Hong Kong and Mainland enterprises to commence its visit programme to Kazakhstan today (June 1). He met with leaders and government officials of Kazakhstan and visited key institutions to learn about the latest developments in the country's economy, as well as its innovation and technology (I&T) and financial sectors.
In the morning, Mr Lee met with Deputy Prime Minister and Minister of National Economy of Kazakhstan, Mr Serik Zhumangarin, to exchange views on deepening economic co-operation between the two places. Mr Lee said that Kazakhstan has been actively promoting reforms on various fronts to bring about rapid economic growth. As one of the world's three major financial centres, and the world's largest cross-boundary wealth management centre and offshore Renminbi (RMB) business hub, Hong Kong can provide diversified and flexible support including capital and asset allocation for Kazakhstan's economic reforms and infrastructure development. He cited as examples last year's dual listing of a Kazakhstani company in Hong Kong and Astana, and the first issuance of RMB "dim sum" bonds in Hong Kong by the Development Bank of Kazakhstan, as landmark achievements in financial co-operation between the two places. He welcomed Kazakhstan's government and its enterprises to continue making use of Hong Kong's financial hub advantages by listing, issuing bonds and conducting project financing to connect with global investors and raise international funds for, and add value to, local development projects.
At noon, Mr Lee met with the President of Kazakhstan, Mr Kassym-Jomart Tokayev, and attended a luncheon hosted by the President, to exchange views on deepening bilateral relations. Mr Lee said that President Xi Jinping first proposed the joint building of the Silk Road Economic Belt in Kazakhstan in 2013. As the place where the Belt and Road Initiative was first proposed, Kazakhstan is also Hong Kong's largest trading partner in Central Asia, with close economic and trade ties, and broad prospects for co-operation. He noted that Kazakhstan is committed to driving economic diversification and, like Hong Kong, it is an important economic powerhouse for regional development and a gateway for trade. As one of the world's most competitive economies, Hong Kong enjoys the advantage of being connected with both the Chinese Mainland and international markets, which aligns closely with the needs of Kazakhstan's industrial transformation. Mr Lee noted that this visit is the first overseas trip led by him since the establishment of the Task Force on Supporting Mainland Enterprises in Going Global, and it is also the largest in scale, with over 70 enterprise and professional representatives from Hong Kong and the Mainland. He said that he looks forward to reaching multiple co-operation agreements during this visit to deepen collaboration in such areas as trade and investment promotion, financial services, I&T, and culture and tourism, as well as further exploring emerging markets and strengthening bilateral economic ties.
Mr Lee said that Hong Kong enjoys the unique advantages of having the strong support of the motherland and being closely connected to the world under the "one country, two systems" principle, and serves as a functional platform for the Belt and Road Initiative. He said that Hong Kong will continue to play its roles as a "super connector" and a "super value-adder", as it further deepens international exchanges and co-operation, and accelerates the development of new growth areas for the economy. He said that he looks forward to strengthening two-way co-operation between the two places, encouraging enterprises in Kazakhstan to make use of Hong Kong's professional services and business advantages to explore the markets of the Chinese Mainland and Asia, while enabling Hong Kong and Mainland enterprises to go global, as they seize the development opportunities arising from Kazakhstan's economic reforms and set up business operations in Central Asia. He noted that with joint efforts, these enterprises could inject new impetus into the high-quality development of the Belt and Road Initiative.
In the afternoon, Mr Lee visited the Astana Hub, a local technology and innovation park, to learn about the latest developments of Kazakhstan in the field of AI. He met with Deputy Prime Minister and the Minister of Artificial Intelligence and Digital Development of Kazakhstan, Mr Zhaslan Madiyev. Mr Lee remarked that this year is the "Year of Digitalization and Artificial Intelligence" of Kazakhstan, and that the Astana Hub, as a major international innovation cluster in Central Eurasia, brings together a large number of start-ups. Mr Lee also introduced Hong Kong's developments in I&T, noting that Hong Kong is actively advancing AI development and driving digital transformation to empower industrial upgrading and transformation. Hong Kong ranks fourth globally in digital competitiveness, and the Shenzhen-Hong Kong-Guangzhou innovation cluster ranks first globally. Hong Kong is committed to becoming an international I&T centre, with the Northern Metropolis being developed at full speed. Covering such projects as the Hong Kong Park in the Loop, the San Tin Technopole, and the Sandy Ridge Data Facility Cluster, the Northern Metropolis will further promote the full integration of technological innovation and industrial innovation, and foster new quality productive forces. He expressed confidence that the Astana Hub and Hong Kong will strengthen connectivity in research collaboration and other areas, and welcomed Kazakhstan's technology and innovation enterprises to set up operations in Hong Kong, leveraging Hong Kong's vibrant innovation ecosystem and robust research and development capabilities to venture into international markets and jointly seize the immense opportunities in technological development.
Mr Lee then visited the Astana International Financial Centre (AIFC) to learn about Kazakhstan's experience in promoting the development of the non-bank financial sector, and meet with the Governor of the AIFC, Mr Renat Bekturov. The AIFC is a national-level financial special zone established by Kazakhstan in 2018. It ranks first in Eastern Europe and Central Asia as a financial centre and has attracted over 5 500 enterprises to register. Hong Kong, meanwhile, ranks third globally and first in Asia in the Global Financial Centres Index. The two financial centres, both operating under the common law system, share the same direction and can strengthen co-operation in such areas as capital markets connectivity, asset management, green and sustainable finance, and financial technology, creating synergy in the joint promotion of regional economic development.
In the evening, Mr Lee attended a dinner hosted by the Prime Minister of Kazakhstan, Mr Olzhas Bektenov.
Mr Lee will continue to lead the delegation during its visit to Kazakhstan tomorrow (June 2).
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
CE leads delegation to begin visit programme to Kazakhstan (with photos/video) Source: HKSAR Government Press Releases
