The Centralasia.News editorial staff continues to tell the readers about the financial giant of Kazakhstan – the Astana International Financial Centre. In this article, a political scientist Zirmir Karazhanov comments on how successful the centre is functioning and what negative phenomena remain. Moreover, the interlocutor shared his views on the work of the financial organisation.
Achievements and problems of Astana
The expert noted that the work of the IFC is supported by the President of Kazakhstan. Kasym-Zhomart Tokayev “gave the go-ahead” for the placement of state securities on the AIX Exchange that is part of the Centre. Moreover, the “green light” will also be given to the IPO of large state-run companies. However, the IFC has not gained real “financial strength” so far.
- Much depends on the financial centre – how successful it copes with the task of attracting capital. In 2018, the AIFC provided the platform for a Kazatomprom IPO; in parallel, the shares of the national company were placed at the London Stock Exchange. According to experts, the auctions overseas were more interesting and successful than those in Kazakhstan, Karazhanov said.
As for accomplishments of the IFC, it has them. However, there are a number of factors that are not in favour of the development of the large-scale financial organisation.
Zamir Karazhanov stressed that the management of the IFC had developed its own approach to a success criterion. The emphasis is placed on the foreign companies that have a partnership with the Centre. Among them are the giants, such as NASDAQ, Shanghai Stock Exchange and Goldman Sachs.
IFC Manager Kairat Kelimbetov reported that in recent years the organisation has attracted portfolio investments amounting to US$ 2.7 billion, including US$2.4 billion in bonds and US$ 220 million in shares, the political analyst said.
Referring to the expert opinion, Karazhanov emphasised that depository receipts prevail over the securities market. This factor can be seen as negatively affecting the activities of the IFC.
Moreover, Kazakhstan has the Almaty stock exchange. Financial analysts believe that the Republic has too many auction sites, given its limited investment opportunities. There occurs the effect of “pulling the blankets” between the exchanges, the interlocutor noted.
IFC – a tool to promote relations with neighbours
The word “international” in the abbreviation of the IFC implies that the organisation should serve as an integration tool to promote international partnerships. The Centre has real prospects to announce itself loudly at least in Asia, on the expanse of the CIS.
- Indeed, the IFC can become an attractive business platform for the CIS countries. Moreover, its management offered the companies from the EAEC and the CIS to use the infrastructure of the Centre for attracting additional capital. In 2019, Russian Polymetal was listed at the AIX stock exchange, Karazhanov said.
The political analyst reminded that a powerful financial player has “settled down” on this stock exchange – the China Construction Bank. Karazhanov considers it a promising step, given the implementation of the large-scale One Belt, One Road Initiative of the PRC.
The interlocutor added that the management of the IFC has offered Uzbekistan its services to attract investments within the privatization policy. However, everything depends on the will of Tashkent.
