Hong Kong Buys First Bank Under OBOR Initiative
Hong Kong’s CITIC Bank International has completed the purchase of 60% of equity in Kazakhstan’s Altyn Bank from its majority Kazak owner, the Halyk Bank for an undisclosed amount. It marks the first time that China has invested in Kazakhstan’s banking sector. CITIC Bank International is a Hong Kong based bank controlled by mainland CITIC Financial Holdings, and traces its history back to 1922 and the formation of the Ka Wa Savings Bank established in the territory by the former President of Hong Kong’s Baptist College. Today, CITIC Bank International has total assets of USD50 billion and an annual turnover of USD10 billion. It is listed on the Hong Kong Stock Exchange.
Kazakhstan’s Halyk Bank meanwhile is known for its offshore remittance network, allowing expatriate Kazaks to transfer money overseas as well as back to Kazakhstan. The Altyn Bank has assets of about USD930 million. The bank was formed in 2014 when Halyk purchased HSBC Kazakhstan. Altyn Bank’s CEO, Umut Shayakmetova, stated about the deal “Within the OBOR Chinese initiative we are seeing Kazakh companies express a clear desire to develop their business in China and we need to follow the needs of our clients”.
China has seen overseen an uptick in Kazakh deals recently, with the Shanghai Stock Exchange stating its intention to purchase 25.1% of the Astana Stock Exchange and COSCO Shipping purchasing 49% of the inland Khorgos Port on the Kazakh side west of Urumqi.
Silk Road Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEAN, China, India, Indonesia, Russia & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Asian and Eurasian region. We maintain offices throughout China, South-East Asia, India and Russia. For assistance with OBOR issues or investments into any of the featured countries, please contact us at firstname.lastname@example.org or visit us at www.dezshira.com
Dezan Shira & Associates´ Silk Road and OBOR investment brochure offers an introduction to the region and an overview of the services provided by the firm. It is Dezan Shira´s mission to guide investors through the Silk Road´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.