Kazakh firms eyeing Hong Kong, mainland China markets urged to take long-term view
Kazakhstan’s businesses should prioritise long-term fundraising ambitions rather than quick wins in the Hong Kong and mainland Chinese markets, the managing director of the Central Asian country’s sovereign wealth fund has said. Saltanat Satzhan, managing director for development and privatisation at sovereign wealth fund Samruk-Kazyna, said she also aimed to list state-owned rail operator…
Kazakh firms should adopt a long-term perspective when considering fundraising in Hong Kong and mainland China, according to Saltanat Satzhan, the managing director of Kazakhstan's sovereign wealth fund, Samruk-Kazyna. Satzhan, speaking at the Astana Finance Days forum, emphasized that the country's rail operator, Kazakhstan Temir Zholy (KTZ), should not be viewed as merely a domestic entity but as a critical component connecting China and Europe.
She believes that listing KTZ in Hong Kong within the year is achievable and anticipates the transaction taking place. Satzhan highlighted that investing in KTZ is not just about domestic railway development but also about supporting connectivity between China and Europe, underscoring the Belt and Road Initiative's importance. The company's prospectus cites the Belt and Road Initiative as one of the reasons for choosing Hong Kong as a listing venue, given the geopolitical conditions and the need for resilient trade routes.
Satzhan urged Kazakh companies to develop a long-term presence in China rather than treating it as a simple fundraising opportunity. She noted that Samruk-Kazyna's strategic companies, such as KazMunayGas and Kazatomprom, already have deep economic ties with China. Additionally, the sovereign wealth fund's bond issuance has reached 10 billion yuan this year, demonstrating the potential for Kazakh firms to attract capital from China.
Satzhan advised that capital market activities should focus on building relationships and establishing a long-term presence in China rather than merely seeking cheap financing. During the discussion, Hong Kong representatives stressed the importance of the city's bourse going global by attracting firms beyond the mainland. Hong Kong Exchanges and Clearing's managing director, Johnson Chui, highlighted that Hong Kong could provide Kazakh firms with broad international exposure to investors within and beyond mainland China.
The city has signed a memorandum of understanding with Astana International Financial Centre to promote collaboration in carbon markets, green finance, and sustainable development. Law firm partner Denise Jong emphasized that attracting listings from around the world, including emerging markets, would drive Hong Kong's growth. She urged regulators to remain open-minded about these markets, recognizing that some, like Samruk-Kazyna, already have robust governance structures in place.
Jong stressed that the city should focus on the business case rather than merely enforcing legal requirements for corporate governance.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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