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.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, attended a networking luncheon hosted by Bank of China Kazakhstan in Kazakhstan today (June 1, Astana time). Photo shows Mr Hui delivering a speech to introduce Hong Kong's unique strengths in finance at the luncheon. Source: HKSAR Government Press Releases
Addressing the Networking Luncheon hosted by Bank of China Kazakhstan in Kazakhstan today (June 1, Astana time), the Secretary for Financial Services and the Treasury, Mr Christopher Hui, said that Kazakhstan, as a major global player in the gold industry with rich reserves, will surely be the city's important partner along Hong Kong's way to build a notable gold market in the Asia time zone. Source: HKSAR Government Press Releases
