Future Outlook
We achieved many important milestones in AIX’s first year: creation of regulatory environment familiar to international investors, fully operational global standard infrastructure, an ecosystem of local and international brokers, a platform for successful IPO of the first national company, Kazatomprom, which was listed within the state privatisation programme. There was significant interest shown by local and international investors in Kazatomprom which resulted in greater level of liquidity than we expected. We have created a world-class exchange in less than a year, and we will continue working on further development of the capital markets in Kazakhstan and the region in the future.
“Kazatomprom” IPO renewed investors’ interest in Kazakhstan’s market. However, IPO of large national joint-stock companies is not the only pillar on which AIX will stand on. We need to have a wide range of securities that will be attractive for domestic and foreign investors. This includes fixed securities – we are working with the Ministry of Finance on the placement of sovereign bonds and sukuks – and exchange traded funds that provide access to assets that are unique to Kazakhstan. And we need to encourage private sector equity listings; especially those that will provide capital for entrepreneurs to grow their business or support the development of the sub-soil sector.
While AIFC and AIX is attracting offshore investment into Kazakhstan and the region, it is equally important for us to develop the local institutional and retail investor base. Outside of the state funds, the local institutional investment sector is small, and all funds are predominately invested in domestic fixed income assets. This needs to change as these funds are the logical providers of equity capital to support the growth of smaller businesses.
We will also support the development of the retail
investor base, which is small and has historically been forgotten. We will innovate to ensure that all Kazakhstanis can invest in the future growth of the country.
AIX is here to revitalize the capital markets in Kazakhstan. To move away from fixed income issues and equity listings offshore, which has resulted in poorer outcomes for the companies and their investors, to a market that’s raises equity capital for businesses and provides the opportunity for all Kazakhstanis to share in the benefits. We will make Kazakhstan’s capital markets globally acceptable, competitive and attractive.
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Federation of Euro-Asian Stock Exchanges
Astana International Exchange
Kazakhstan has experienced profound economic changes in the past 20 years and, despite sizeable currency and banking sector challenges, it has been successful, overall, in improving the living standards of its citizens. Kazakhstan is best-described as a young market economy experiencing a process of transition towards higher-income status. Contrary to other commodity rich countries, we believe, Kazakhstan does not intend to rely on exports as a key growth model, but rather to attract foreign capital and skilled labour on the basis of its geographical location, low taxation and improving institutional infrastructure (Wood&Co country report, December 2018).
AIX’s goal is to develop a vibrant capital market for Kazakhstan and the region which supports economic growth. Our priority is to create a “familiar environment” for investors: a regulatory environment that is similar to other international jurisdictions, a technology platform with industry standard protocols that connect the exchange with the global investors and a group of brokers connect us with domestic and offshore investors. We now have all the necessary ingredients in place. And we demonstrated this with the “Kazatomprom” JSC IPO.
Mr. Timothy Bennett
Chief Executive Officer
Astana International Exchange
Astana Finance Days
Astana Finance Days spanned over the course of a several days to combine key panel discussions and plenary session with satellite events and platforms. Guests participated in discussions, witnessed the opening of trading day on Astana International Exchange, exhibitions of new tech products and services, commencing of new companies at the AIFC, and learned more about the AIFC and Kazakhstan.
Over time, the new “rules of the game” AIX has established for Kazakhstan’s capital market will lead to a deeper and more liquid market which will increase the availability of, and lower the cost of capital for businesses, making investment more attractive and increasing the rate of economic growth.