Amid rising unilateralism and protectionism in developed economies, Hong Kong sees an increasing need for its trade, logistics and financial industries to make strategic adjustments. The city’s recent endeavors to tap into new markets, including the ongoing visit to Central Asian countries, namely Kazakhstan and Uzbekistan, by a high-powered delegation led by Chief Executive John Lee Ka-chiu, are part of a strategy aimed at reducing the special administrative region’s vulnerability to the volatility and uncertainty in its traditional European and United States markets.

There are at least three reasons for Central Asia — Kazakhstan and Uzbekistan in particular — to be chosen as the destination of Lee’s latest official overseas visit after his visits to Southeast Asia and the Middle East in recent years.

First, in the context of the current geopolitical conflicts around the world, the geographical advantages of Central Asia have become more prominent. The region borders China to the east and Europe to the west, and leads to oil-producing countries in the Middle East to its south. The significance of Central Asia as a crossroads of land transportation between Europe and Asia has become more prominent since the outbreak of the Iran war, which has caused the virtual shutdown of the Strait of Hormuz shipping lane.

Second, cooperation between China and Central Asian countries under the Belt and Road Initiative has deepened and continues to expand. Countries in the region urgently need to upgrade their infrastructure, develop emerging industries, and improve facilities for smooth trade and logistics. China can and tries to meet all these demands. This dynamism provides favorable conditions for the HKSAR to expand its economic footprint into Central Asia.

Third, among the five Central Asian countries, Kazakhstan and Uzbekistan are best placed for economic cooperation with Hong Kong. Kazakhstan, as the largest economy in Central Asia, accounts for approximately 60 percent of the region’s GDP, with a robust economic growth rate of 6.5 percent in 2025. It is not only a land logistics hub connecting China and Europe but also a treasure trove of oil and gas, uranium ore, and nonferrous metals. Meanwhile, with a population of over 38 million, Uzbekistan has a huge domestic market. Over recent years, its average annual GDP growth rate has remained above 5 percent, and reached 7.7 percent in 2025. The two countries provide Hong Kong’s professional services sectors a huge market for business expansion.

‘Hub-to-hub’ cooperation model

The cooperation model Hong Kong seeks to forge with Central Asian countries, as suggested by the chief executive, stands out when compared with the traditional global cooperation model. Traditional economic cooperation focuses on individual deals, whereas the “hub-to-hub” cooperation model proposed by Lee seeks to connect platforms or systems of both sides.

Kazakhstan and Uzbekistan are the gateway hubs for foreign capital to enter the five Central Asian countries. Hong Kong is a global financial and logistics hub that connects East Asia and Southeast Asia and serves other economies around the world. Linking these two hubs systematically like a central nervous system means creating an efficient and direct new trade route between the eastern and central parts of the Eurasian continent. A hub-to-hub framework can promote the deep integration of rules and functions and boost the potential for cooperation between both sides.

While the traditional markets in Europe and North America are saturated, highly competitive and with growing risks, Central Asian markets offer numerous business opportunities because of the existence of development gaps and increasingly favorable policies. This provides a brand-new growth track for Hong Kong’s advantageous industries such as trade, finance, logistics and professional services

A hub-to-hub framework is made possible by the fact that Kazakhstan has introduced a judicial system based on common law into the Astana International Financial Centre (AIFC), and established the AIFC Court, which is independent from the state judicial system of Kazakhstan. This institutional alignment allows Hong Kong’s lawyers, accountants, and compliance experts to seamlessly connect with Central Asian enterprises.

Specifically, collaboration in the following areas could be facilitated during Lee’s official trip under the hub-to-hub framework:

Offshore renminbi business: The demand for RMB settlement and financing in Central Asian countries is on the rise; and Hong Kong has the world’s largest offshore RMB fund pool (exceeding 1 trillion yuan, or $148 billion). A major breakthrough could be made in this area.

Pricing power for bulk commodities: Uzbekistan ranks among the top 10 gold producers in the world, while Kazakhstan is the world’s largest producer of uranium. Hong Kong is building an international gold trading center and vigorously developing the trading of bulk commodities. Lee’s trip could hopefully facilitate the expansion of Hong Kong’s financial services to the physical asset business, thus enhancing Hong Kong’s influence in the global commodity market.

Green finance: Central Asia is confronted with severe ecological challenges while being rich in solar and wind energy resources. Hong Kong, as a green finance center in Asia, can provide certification, financing and secondary trading services for its solar and wind energy projects. This is a blue ocean market with great potential. The delegation led by Lee to Central Asia consists of over 60 business leaders from Hong Kong and representatives of Chinese mainland enterprises. Enterprises from Hong Kong and the mainland provide a perfect mix of solutions for investment in and trade with the two Central Asian countries.

Industrial connection: Mainland enterprises enjoy a leading advantage in global industrial chains in energy exploration, infrastructure construction, new energy technology and other fields. Central Asian countries urgently need to break away from their reliance on raw-material exports through industrialization, which plays well with their strategy to transform resource advantages into manufacturing capabilities. The two sides can collaborate closely in this area.

Financial support: Mineral production and infrastructure projects in Central Asia are usually characterized by long cycles, large capital demands, and high risks. The capital market in Hong Kong can offer a variety of financing channels, including initial public offerings, bond issuances, project financing, and Islamic finance.

Brand building: As a highly internationalized platform, Hong Kong can offer high-quality international arbitration, tax planning, and brand management services, helping mainland enterprises reduce the risks of “going global”. The joint efforts of both sides to explore the Central Asian market will benefit all parties involved.

While the traditional markets in Europe and North America are saturated, highly competitive and with growing risks, Central Asian markets offer numerous business opportunities because of the existence of development gaps and increasingly favorable policies. This provides a brand-new growth track for Hong Kong’s advantageous industries such as trade, finance, logistics and professional services.

The purpose of Lee’s visit to Central Asia is to turn Hong Kong into a function node and a professional service center under the Belt and Road Initiative, and extend Hong Kong’s economic radius to the shore of the Caspian Sea through the establishment of a hub-to-hub cooperation framework with the region. This enterprising strategic move, which is in line with the incumbent administration’s publicly announced proactive governance philosophy, is worth looking forward to.
 

The author is vice-chairman of the Committee on Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese of the National Committee of the Chinese People’s Political Consultative Conference, and chairman of the Hong Kong New Era Development Thinktank.

The views do not necessarily reflect those of China Daily.