Kazakhstani institutional investors have become allowed to purchase AIX traded securities denominated in KZT

07 December 2020

Astana International Exchange (“AIX” or the “Exchange”) is pleased to announce that the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market has approved amendments to regulatory and legal acts necessary to ensure that Kazakhstani institutional investors are now able to trade on AIX and hold AIX-listed securities denominated in KZT under the same prudential requirements as other venues.  

Going forward, financial institutions (banks, insurance companies, investment funds, brokerage firms) may acquire publicly traded AIX shares and other securities of Kazakhstani companies, denominated in Tenge. Previously, institutions were allowed to purchase on AIX foreign currency denominated securities only.

Tim Bennett, CEO of AIX, commented:

“Development and integration of the securities market are essential conditions for sustainable economic growth of the country.  We are pleased that Kazakhstani institutional investors will be given the opportunity to replenish their asset portfolio with shares of Kazakhstani companies listed on AIX. Investments in the “national champions” of Kazakhstan will undoubtedly contribute to business growth, and will also favorably affect the development of the equity market and the national economy as a whole.”  

Background information:

AIX was formed in 2017 under the development of the Astana International Financial Center. The shareholders of AIX are the Astana International Financial Center, Goldman Sachs, Shanghai Stock Exchange, Silk Road Foundation, and NASDAQ, which also represents the AIX trading platform. The Exchange is operating within the legal and regulatory environment in the common English law jurisdiction, thereby assuring the reliability of the investment environment. AIX has the mission of developing an active capital market in Kazakhstan and the region by ensuring clear and favorable conditions for raising funds for public and private businesses. AIX develops special segments for mining enterprises, and implements infrastructure projects as part of the “Belt and Way” initiative. More detailed information is available at www.aix.kz.

AIFC. The Astana International Financial Center was created at the initiative of the First President of the Republic of Kazakhstan, Elbasy Nursultan Nazarbayev, under the Plan of the Nation “100 Steps to Implement Five Institutional Reforms”. On July 2, 2020, the Center’s Development Strategy until 2025 was adopted at the meeting of the AIFC Management Board. In accordance with it, the AIFC vision lies in achieving the status of a leading international financial center in the region that includes Central Asia, Caucasus, the EEU countries, Western China, Mongolia and Eastern Europe.  The AIFC’s mission is to promote sustainable long-term development of the region. As noted by Head of State K. Tokayev, “the AIFC, given its unique capabilities, can serve as a universal platform that connects the countries of the region.” The strategic directions of the AIFC’s sustainable development include the development of a close-loop economy, financial technologies and a “digital financial center”.    www.aifc.kz