Hong Kong’s Yuan Push Could Open New Financing Route for Kazakhstan

Hong Kong’s plans to deepen its offshore renminbi market could give Kazakhstan access to a broader pool of Chinese capital, lower-cost yuan financing and a more diversified investor base, according to Talgat Salikhov, chairman of the management board of Teniz Capital Investment Banking.

«We very much welcome these initiatives and are quite pleased that Kazakhstan, and Central Asia generally, were specifically mentioned, ” Salikhov told China Daily in an exclusive interview.

Hong Kong’s First Five-Year Plan for Economic and Social Development for 2026-2030 and its 2026 Policy Address, published Sept. 16, set out a series of measures aimed at strengthening Hong Kong’s role as an international offshore renminbi hub and expanding financial ties with regions including Central Asia and Southeast Asia. The measures include expanding yuan-denominated foreign exchange futures products and exploring the possibility of direct exchange between offshore renminbi and other regional currencies.

Salikhov said the initiatives could strengthen financial links between China and Central Asia and give businesses access to a broader regional capital market.

Тhe measures would give Kazakh businesses, the government and the quasi-public sector better access to Chinese investment, technology and expertise. He also described them as practical steps that could reduce transaction costs and make it easier to hedge and convert renminbi into tenge. Yuan financing is also often cheaper than dollar financing, he said, which could help diversify portfolios and support investment in the country’s infrastructure.

The new measures come as Kazakhstan is already expanding its use of Chinese capital markets. Salikhov noted that Kazakhstan and Central Asia had been mentioned separately in Hong Kong’s plans. According to him, the Hong Kong Stock Exchange is also expected to launch an offshore yuan bond index in the near future. The index is intended to become a new benchmark for the Dim Sum bond market.

He said the move could give Kazakhstan access, first, to a deeper bond market and, second, to a more diversified investor base, which could improve pricing over time. Assel Tolegen, director of the corporate finance department at Teniz Capital Investment Banking, said the new bond index could also contribute to the development of the secondary market.

«I think the volume of Dim Sum bond issuance will double, because international interest rates, particularly in the United States, are rising. Raising financing in yuan is becoming more attractive, ” Tolegen said.

Teniz Capital acted as local lead manager for the Panda bond issue of the Samruk-Kazyna Sovereign Wealth Fund, as well as for sovereign Panda bond issuances by Kazakh Ministry of Finance in May and September this year.

Hong Kong also plans to further strengthen its position as a financial center by promoting dual primary and secondary listings for foreign companies, including companies from countries and regions participating in the Belt and Road Initiative. The city also plans to promote the inclusion of qualifying Kazakhstan stock exchanges on its list of recognized stock exchanges.

Salikhov expects the number of Kazakh companies seeking listings in Hong Kong to continue to grow. He said many companies were already exploring financing opportunities in China and seeking to attract more Chinese capital. At the same time, he stressed that the quality of implementation would be crucial to the success of the new measures.