Financial Secretary Paul Chan said more state-owned infrastructure companies from Central Asia are preparing to list in Hong Kong as the city works to broaden international capital connections and deepen economic engagement with the region.
Chan did not disclose which companies are weighing initial public offerings nor did he provide a timetable for potential listings.
Officials view these prospective offerings as part of Hong Kong's effort to bolster its role within China’s Belt and Road initiative and to attract issuers from jurisdictions outside mainland China. Chan said that more than 100 companies from Belt and Road economies are already listed on the Hong Kong Stock Exchange, and their combined market capitalization tops HK$340 billion ($43.4 billion).
Hong Kong has been actively expanding economic ties with Central Asia, positioning itself as a financial gateway linking that region with China and Southeast Asia. Chief Executive John Lee led a delegation to Kazakhstan and Uzbekistan earlier this year; the group included senior government officials and business leaders, among them the chief executive of Hong Kong Exchanges and Clearing, Bonnie Chan.
One concrete example of a potential Central Asian listing has already appeared. State-owned railway operator Kazakhstan Temir Zholy filed for a Hong Kong initial public offering in June as it seeks financing for construction of a cross-border railway connecting Kazakhstan and China.
Market participants say a successful placement by Kazakhstan Temir Zholy would increase avenues for Hong Kong investors to access Central Asian infrastructure assets and could serve as a practical test case for other state-owned enterprises from the region that may be considering Hong Kong’s capital markets.
Hong Kong’s push to attract Central Asian issuers is aligned with its broader objective of diversifying the city’s listing pipeline and reinforcing its status as a fundraising center for companies engaged in Belt and Road projects. Additional state-owned listings from Central Asia could also strengthen financial links between China and the region as investment in transportation, trade and other cross-border infrastructure grows.
Summary
Paul Chan reported that more Central Asian state-owned infrastructure firms are planning Hong Kong listings, without naming the companies or giving a timetable. These moves form part of a strategic effort to connect Hong Kong’s capital markets to Belt and Road economies, where over 100 issuers already have a presence and a combined market capitalization exceeding HK$340 billion.
Key points
- Additional state-owned infrastructure firms from Central Asia are considering Hong Kong listings, according to Paul Chan.
- Hong Kong aims to use listings to deepen its role in the Belt and Road initiative and to broaden its issuer base beyond mainland China; more than 100 Belt and Road economy companies already list in the city with combined market capitalisation above HK$340 billion.
- The prospective deals could give investors greater exposure to Central Asian infrastructure sectors such as transportation and trade, and help solidify Hong Kong’s position as a fundraising hub for cross-border projects.
Risks and uncertainties
- Identity and timing of the companies: Chan did not name the state-owned firms or provide a schedule, leaving uncertainty over which issuers will proceed and when - affecting capital markets and investor planning.
- Execution risk for potential listings: It is unclear whether all contemplated offers will reach the market or how they will be received by investors, which could affect market depth in sectors tied to infrastructure and transportation.
- Dependence on individual test cases: The outcome of the Kazakhstan Temir Zholy filing may influence other state-owned enterprises from the region considering Hong Kong listings, creating a sequencing risk for expansion of Central Asian issuers.
Note: This article reflects statements attributed to Paul Chan and publicly disclosed filing activity. Specific company identities and schedules were not provided.