Executive Summary
- Tungsten miner Jiaxin International Resources’ dual-listing on AIFC and the Hong Kong stock exchange is an “icebreaker” for cross-border equity and debt deals between Kazakh and Chinese entities.
- The dual-listing is expected to pave the way for more companies to leverage Hong Kong’s liquidity and facilitate Chinese investment into Central Asian and Eurasian markets.
- Kazakhstan’s AIFC is strategically positioned as a crucial financial gateway for Chinese investment, aligning with Beijing’s expanding Belt and Road Initiative.
The Story So Far
- The recent dual-listing of tungsten miner Jiaxin International Resources on the Astana International Financial Centre (AIFC) and the Hong Kong stock exchange is considered an “icebreaker” for cross-border equity and debt deals between Kazakh and Chinese entities. This event underscores the AIFC’s strategic importance as a financial gateway for Chinese investment into Central Asia, further integrating regional economies within the framework of Beijing’s expansive Belt and Road Initiative, and leveraging Hong Kong’s substantial liquidity to facilitate these capital flows.
Why This Matters
- The dual-listing of Jiaxin International Resources on the AIFC and Hong Kong stock exchange serves as an “icebreaker,” establishing a precedent that is expected to significantly increase cross-border equity and debt deals between Kazakh and Chinese entities. This move will leverage Hong Kong’s substantial liquidity to facilitate greater Chinese investment into Central Asian and Eurasian markets, thereby strengthening the AIFC’s role as a financial gateway and deepening economic integration within the Belt and Road Initiative.
Who Thinks What?
- Renat Bekturov, the governor of AIFC, views the dual-listing as an “icebreaker” and a precedent, generating significant interest from both Kazakh and Chinese companies and positioning AIFC as a crucial financial gateway for Chinese investment into Central Asia.
- Chinese financial companies and the broader market see the successful dual-listing as paving the way for more companies to leverage Hong Kong’s substantial liquidity, facilitating Chinese investment into Central Asian and Eurasian markets and underscoring a growing appetite for cross-border financial integration.
A recent dual-listing on the Astana International Financial Centre (AIFC) in Kazakhstan and the Hong Kong stock exchange by tungsten miner Jiaxin International Resources is being hailed as an “icebreaker” for cross-border equity and debt deals between Kazakh and Chinese entities. The move, which has sparked significant interest, is seen as paving the way for more companies to leverage Hong Kong’s substantial liquidity and facilitate Chinese investment into Central Asian and Eurasian markets.
Regional Financial Integration
Renat Bekturov, the governor of AIFC, stated that Jiaxin International Resources’ debut generated “a lot of interest” from both Kazakh and Chinese companies looking to pursue similar listings. He emphasized that this dual-listing creates a precedent for companies with Kazakhstani roots and Chinese firms holding assets in Kazakhstan.
The AIFC, a special economic zone in Kazakhstan’s capital, has strategically positioned itself as a crucial financial gateway for Chinese investment. This role is particularly significant as Beijing’s Belt and Road Initiative continues to expand its reach across Central Asia.
Growing Market Interest
Interest is also emerging from Chinese financial companies, including brokers and underwriters, seeking cooperation with potential Kazakhstan issuers. These collaborations span both equity capital and fixed income, drawing on the vast pool of liquidity available in Hong Kong’s financial markets.
Outlook for Cross-Border Deals
The successful dual-listing underscores a growing appetite for cross-border financial integration within the region. It highlights the AIFC’s strategic importance in facilitating Chinese investment and capital flows into Central Asian economies, further solidifying the economic ties fostered by the Belt and Road Initiative.
