HKMA licenses Bakai Bank, city’s first from Central Asia
Hong Kong Monetary Authority (HKMA) has granted a banking licence to Bakai Bank, marking the first Central Asian bank to set up in Hong Kong amid closer ties in the economy and trade flows between China and the region, according to a statement on Monday. Bakai Bank, one of the largest lenders in Kyrgyzstan, will operate as a restricted licence bank in Hong Kong. It will be the 17th restricted…
The Hong Kong Monetary Authority (HKMA) has licensed Bakai Bank, the first Central Asian bank to establish operations in Hong Kong, amid growing economic and trade ties between China and the region. Bakai Bank, one of the largest lenders in Kyrgyzstan, will function as a restricted licence bank in Hong Kong, allowing it to accept deposits of at least HK$500,000 and engage in corporate and merchant banking activities, while excluding retail banking.
Bakai Bank's CEO, Andreas Meletiou, expressed the company's ambition to leverage Hong Kong as a strategic platform to expand its presence in the region, stating that the city offers an ideal setting to function as a bridge between Central Asia and the Asia-Pacific. This licensing marks a significant milestone for Central Asia, particularly considering the evolving relationship between Central Asia and East Asia.
Hong Kong has been actively fostering commercial ties with Central Asia, with Chief Executive John Lee Ka-chiu leading a delegation to Kazakhstan and Uzbekistan in June. Central Asia, consisting of Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan, is situated at the heart of China's Belt and Road Initiative, which aims to enhance regional trade flows.
In 2022, China became the largest trading partner for Central Asian countries, with total trade in goods reaching US$106.3 billion, a 12% increase from the previous year, as per data from the Ministry of Commerce. China exported US$71.2 billion worth of machinery, electrical, and hi-tech products to Central Asia, while importing US$35.1 billion in agricultural and industrial goods.
Meletiou mentioned that Bakai Bank currently employs 35 staff members and plans to expand to around 50 in the future, targeting businesses requiring payment, foreign exchange, and financing services for trade and investment purposes in Central Asia and mainland China. According to him, the timing and market opportunities align perfectly with the bank's strategy to serve as a critical link between Central Asia and mainland China.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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