Kazakhstan may soon welcome a new Chinese bank, China Construction Bank. Madina Abylkassymova, head of the Agency for Regulation and Development of the Financial Market (ARDFM), said the bank could obtain a license to participate in investment projects, as Kazakh companies show strong demand for Chinese financing, reports infohub.kz.
Abylkassymova explained that China Construction Bank already operates in Kazakhstan through a subsidiary registered in the Astana International Financial Centre (AIFC). However, banks in the AIFC face restrictions: they cannot directly handle deposits from individuals and businesses in the national currency, but they can participate in syndicated loans. These changes were adopted two years ago, and now China Construction Bank is involved in such loans for joint Kazakh-Chinese projects.
"At the same time, the bank has expressed great interest in implementing other investment projects in Kazakhstan and expanding its lending activities. During our recent trip to China with the National Bank, they also expressed interest, seeing great potential in expanding financing for various projects and broadening their operations specifically in Kazakhstan. For this, they need a license not within the AIFC but in our jurisdiction. We held meetings, interest was expressed, but the final decision will be made by the bank," noted Madina Abylkassymova.
According to the ARDFM head, the regulator is ready to assist China Construction Bank in obtaining a banking license, as the country welcomes any new investments.
Abylkassymova also reminded that three Chinese banks already operate in Kazakhstan: ICBC (Industrial and Commercial Bank of China), Bank of China, and China CITIC Bank, which is a major shareholder of Altyn Bank. They have a substantial portfolio focused on financing joint projects and trade finance in Kazakhstan. For example, ICBC serves as a clearing bank for yuan transactions.
"Over the past two years alone, ICBC has increased its credit portfolio and financing volumes by 500 billion tenge — credit plus debt financing in Kazakhstan. They participate in the placement and purchase of panda bonds. Overall, the Asian-Chinese direction is developing very actively, and the cost of financing and attracting resources is much lower. Therefore, we see high demand from companies, especially local ones, for placing panda bonds and attracting financing from Asian markets," said Abylkassymova.
Earlier it was reported that China Construction Bank (CCB), one of China's largest banks, is considering establishing a subsidiary bank in Kazakhstan.