Hong Kong Exchanges and Clearing (HKEX) announced on Tuesday it has signed two memoranda of understanding in Kazakhstan as part of efforts to deepen market connectivity with Central Asia.

The signing came after the bourse operator joined the government's largest delegation to date to visit Kazakhstan from Sunday, with its agreements among a total of 43 signed so far.

In a statement, HKEX noted that one of the agreements is with Astana International Exchange (AIX) which operates within the Astana International Financial Centre (AIFC).

The AIFC is a special economic zone that was launched in 2018 in the Kazakh capital, Astana, and serves as the country's international financial hub under a common law umbrella.

It's also part of the Belt and Road Initiative's financial infrastructure, which aims to increase financial connectivity in countries and regions such as Central Asia, China, Russia and the Arab states.

Under the agreement, the two exchanges would cooperate on widening cross-border listing opportunities and growing dual listings in equities, as well as cross-border listings of debt securities on their respective exchanges.

The HKEX also signed an agreement with the AIFC Authority, which is the body responsible for the strategic development of the AIFC.

Under this deal, HKEX would pursue cooperation with the authority in areas such as climate transition, decarbonisation, green finance, sustainable aviation projects, as well as trading of commodities and financing of the early-stage mining projects.

HKEX chief executive Bonnie Chan said she is delighted to see the two sides reaching agreements, adding that the MoUs would help "unlock new opportunities" for global issuers and investors.

She added that the deals extended the SAR's role as a market connector supporting the two-way flow of capital between the city and Central Asia, after the two sides welcomed their first dual-listing firm last year.

"I've already come into contact with many [Kazakh] local enterprises during this trip, and I hope in the coming days, we'll see more enterprises from Kazakhstan raise funds by making use of the capital market in Hong Kong," she said in Astana.

"Meanwhile, many mainland companies actually have already established businesses here in Kazakhstan, many of which listed in Hong Kong.

"It's inspiring for me to learn more about how are they using the funds raised in Hong Kong to help them expand in Central Asia. And I hope we can do more in this front," she added.

Bakhtiyar Tleubekov, chairman of the management board of AIFC Authority, noted in a statement that the collaboration between the two sides marks an important step on enhancing connectivity between Central Asia and Asia-Pacific.

Echoing Tleubekov, Astana International Exchange chief executive Assel Mukazhanova said there's huge potential for the two sides to together facilitate cross-border capital flows.



Edited by Thomas McAlinden