As Central Asia emerges as a new growth engine, Hong Kong can position itself as a vital financial bridge connecting the rising economies in the region with global capital, a senior banker said.
Stephen Chan Man, acting chairman of the Hong Kong Association of Banks, will be part of a 60-member delegation led by Hong Kong Chief Executive John Lee Ka-chiu to Kazakhstan and Uzbekistan next week. The delegation includes business leaders from various sectors, as well as entrepreneurs from the Chinese mainland.
Speaking to the media on Thursday, Chan said the two Central Asian countries are actively pursuing market opening, financial reforms, and infrastructure development.
“As an international financial center, Hong Kong boasts a mature and well-developed banking system, an efficient capital market, and is also the world’s largest offshore renminbi hub, with the deepest offshore RMB liquidity pool globally,” said Chan, who is also deputy chief executive of the Bank of China (Hong Kong).
“These unique advantages make Hong Kong a natural bridge, closely connecting global capital with emerging opportunities in Central Asia.”
Chan said that as Kazakhstan and Uzbekistan accelerate their economic transformation and opening up, the banking industry can provide diversified financing services tailored to the development needs of Central Asian enterprises. These services include project financing, bond issuance, RMB fund management, settlement, and external financing such as cross-border payments and supply chain financing.
Chan also championed the “hub-to-hub” concept proposed by Lee, pairing Hong Kong as the gateway to East and Southeast Asia with Kazakhstan and Uzbekistan as Central Asia’s entry points.
He proposed establishing direct exchange arrangements for Central Asian currencies and the RMB in Hong Kong, which would reduce transaction costs and boost RMB liquidity.
On infrastructure, he noted that Central Asian countries are expanding transport and energy projects, and Hong Kong banks can provide local financing solutions through syndicated loans or issuance of medium- to long-term offshore bonds.
Regarding capital market alignment, Chan said that Kazakhstan’s Astana International Financial Centre operates under a common-law framework, and Hong Kong can attract local state-owned enterprises and mining companies to issue bonds or list on the Hong Kong stock exchange.
“We hope that this visit will provide us with a deeper understanding of the latest local policy developments and business needs, thereby enabling us to establish new models of cooperation,” Chan said.
Contact the writers at stacyshi@chinadailyhk.com
