Hong Kong’s ambitions to deepen regional financial cooperation and advance renminbi internationalization will strengthen connectivity between the Chinese and Central Asian markets, a Kazakh investment company said, adding that measures outlined in the latest Policy Address and the city’s five-year plan signal strong political commitment and could help businesses tap a broader regional capital pool.

“We very much welcome these initiatives and are quite pleased that Kazakhstan, and generally Central Asia, were specifically mentioned,” said Talgat Salikhov, chairman of the board of Almaty-based Teniz Capital Investment Banking JSC.

“These measures are very important because they will provide, in addition to financial connectivity, better access (over time) for Kazakh businesses, the Kazakh government and quasi-state institutions to Chinese investments, Chinese technologies and expertise,” he said during an exclusive interview with China Daily.

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The special administrative region’s First Five-Year Plan for Economic and Social Development (2026-2030) and the latest Policy Address announced last week outlined a range of initiatives aimed at consolidating the city’s position as an international offshore renminbi hub and expanding financial ties with regions such as Central Asia and Southeast Asia. The measures include enriching renminbi foreign exchange futures products, and exploring arrangements for direct exchange between offshore renminbi and other currencies.

Describing the measures as “very practical”, Salikhov said they are likely to reduce transaction costs while enabling companies and institutions to “convert or hedge yuan directly against currencies such as the tenge”.

He added that the initiatives would give the Kazakh government and businesses greater access to renminbi funding — often a lower-cost option compared with the US dollar — for portfolio diversification and financing purposes, accelerating economic development and infrastructure investment in the country.

The Policy Address said an Offshore RMB Bond Index will soon be launched on the Stock Exchange of Hong Kong to provide a brand-new reference for dim sum bond market trends.

“Through the bond indexes, Kazakhstan will have access to a deeper bond market, as well as a broader and larger, diversified investor base, which also with time will improve pricing for Kazakhstan,” Salikhov said.

Earlier this month, the Development Bank of Kazakhstan placed a two-tranche dim sum bond issue with a total volume of 3.7 billion yuan ($552 million), listed on the Astana International Exchange and the Stock Exchange of Hong Kong. Meanwhile, Kazakhstan issued its second sovereign panda bond, raising 6.6 billion yuan in the China Interbank Bond Market, with Teniz Capital acting as the sole local manager on the Kazakh side.

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Assel Tolegen, director of the corporate finance department at Teniz Capital, believes the new bond index will help expand secondary trading.

“I think the trend for dim sum bond issuance will increase twice, because as of now you see that international interest rates, namely US rates, are rising. Funding in renminbi is more attractive,” she said, adding that the company also has plans for related products in the future.

To further reinforce its status as a financial hub, Hong Kong also plans to promote dual primary and secondary listings of overseas enterprises, including those from places involved with the Belt and Road Initiative, and advance the inclusion of Kazakhstan’s qualifying exchanges to the list of recognized stock exchanges.

Salikhov said the potential new channel would open a path for Kazakh companies to a larger investor base and more diversified capital markets, with access extending beyond the HKSAR and the Chinese mainland to the wider Asian markets.

He expects the number of Kazakh companies seeking listings in Hong Kong to continue to grow, noting that many are already exploring fundraising opportunities in the city and looking to attract more Chinese capital. However, he stressed that effective execution of the new measures would be key.

Kazakhstan Temir Zholy, the country's state-owned railway and logistics operator, filed for an initial public offering in Hong Kong in June. The company is reportedly aiming to launch the offering as early as October and raise up to $5 billion.

Contact the writer at gabylin@chinadailyhk.com