Kazakhstan’s privatisation push offers new IPO opportunities for Hong Kong
The city’s deep capital markets and SOE listing expertise offer Central Asia’s largest economy a proven pipeline to global investors
In the almost 35 years since leaving the Soviet Union, Kazakhstan has been gradually privatising its numerous state-owned assets. The pace of change has been uneven, but the political will seems to be there – and this desire to attract foreign capital could provide Hong Kong with a huge opportunity.
The economies of Kazakhstan and China have long been intertwined. The sprawling Central Asian nation to China’s northwest was once a vital node on the ancient Silk Road, and today it plays an equally pivotal role in the Belt and Road Initiative. It was no coincidence that President Xi Jinping chose Kazakhstan’s capital Astana from which to announce the formation of the terrestrial Silk Road Economic Belt in 2013.
Though it is the world’s ninth-largest country, Kazakhstan has a population of only about 21 million and an economy dominated by industries such as oil, gas and minerals. It is the world’s largest producer of uranium and a leading producer of many other important minerals including chromium, copper, lead, zinc, iron, silver, gold, bauxite and manganese.
Astana’s drive to attract foreign investment is gaining swift momentum. Kazakhstan’s public sector has long been anchored by two core pillars: sovereign wealth fund Samruk-Kazyna and development finance institution Baiterek. While Samruk-Kazyna’s holdings cover gas, electricity, aviation and mining, Baiterek focuses on lending to SMEs, housing and infrastructure. Together, their economic footprint accounted for roughly 40 per cent of national GDP in 2024, according to estimates by the International Monetary Fund.
Seeking to transform this public sector landscape, Prime Minister Olzhas Bektenov announced in May 2025 that 475 state-backed enterprises will be privatised, merged or liquidated in phases leading up to 2030.