KASE and Bank of Chinа limited signed Memorandum of Mutual Understanding
Kazakhstan Stock Exchange
Posted: Saturday, 16 Sep 2017
Kazakhstan Stock Exchange (KASE, the Exchange) and Bank of Chinа limited concluded a Memorandum of Mutual Understanding. Cooperation under the memorandum will promote further interaction between national financial markets of both countries. The memorandum was signed during the international conference "Settlements in national currencies of the Republic of Kazakhstan and People's Republic of China: current situation, trends and outlooks" on September 14, 2017 in Almaty.
Partnership of Kazakhstan Stock Exchange (KASE) and Bank of Chinа limited is crucially important for extending the use of national currencies in settlements between companies of China and Kazakhstan.
"Along some lines KASE and SB Bank of China in Kazakhstan (subsidiary of "Bank of Chinа limited" in Kazakhstan, note – KASE) have been cooperating for many years, and we are glad to develop the cooperation promoting an extension of mutual settlements in national currencies of both countries and the yuan-denominated product range. This is also an important step complying with interests of development of financial markets of both Kazakhstan and China. The Exchange and Bank of Chinа limited will jointly work on projects that in future will allow Kazakh and Chinese investors to use a broader range of financial instruments denominated in the tenge and yuan", – pointed out KASE's CEO Alina Aldambergen.
"Our Bank believes that a joint conference and signing of the Memorandum of Mutual Understanding will promote the strengthening of our cooperation, as well as give a new impulse to the development of trading and settlements in the national currencies of China and Kazakhstan. That is especially important in the light of the government program of infrastructure development "Nurly Zhol" and Initiative "One Belt – One Way",– emphasized CEO of SB Bank of China in Kazakhstan Mr. Liu Wei.
Development of conversion transactions CNY/KZT and extension of the range of traded instruments are the direct contribution of KASE and Bank of Chinа limited to the development of the goods turnover between our countries and implementation of joint investment projects. The popularity of such instruments is clearly shown by the growing volume of deals in instruments CNY/KZT on KASE.
In particular, over 8 months of 2017 the volume grew by 59 % on the similar period of last year.
Cooperation between KASE and Bank of China began in 1999, when SB Bank of China in Kazakhstan became a member of KASE. Currently, Kazakhstan-based subsidiary of Bank of Chinа limited is the market-maker for all instruments of the currency pair KZT/CNY, the settlement bank of the Exchange on yuan.
Related Link: http://www.kase.kz/files/press/en/14_09_2017_Memorandum_KASE_Bank_of_China_eng.pdf