Chief Executive John Lee will lead a delegation to Kazakhstan and Uzbekistan in June, a move the investment industry believes will open new markets for Hong Kong businesses and boost regional economic links.
Asset management company representative Cliff Zhang, who is part of the delegation, has previously accompanied the Chief Executive on two visits to the Middle East. His company signed an agreement with Oman last September to launch that country’s first energy transition fund.
Mr Zhang said several collaborations are expected to be announced during the Central Asia trip, including joint investments with the Oman Investment Authority.
He noted that Middle Eastern governments and institutions are optimistic about the vast potential of the Central Asian market. He emphasised that Hong Kong can serve as a vital bridge connecting the Chinese Mainland, the Middle East and Central Asia.
“It is essentially leveraging the capital from the Middle East which has the desire and the interest to invest more in Central Asia which has the market and the market opportunities,” Mr Zhang said.
“Countries of the Middle East need the Chinese and the Asian companies to bring their products, their technology, their services to those markets,” he added.
“That is where Hong Kong plays a role in connecting the dots, being a “super connector” and a “super value-adder” in bringing everybody together.”
Mr Zhang highlighted Central Asia’s unique economic advantages, emphasising its young population, abundant natural resources and strategic position between Asia and Europe.
While noting that the distinct strengths and investment landscapes of Central Asia and the Middle East cannot be directly compared, he sees significant opportunities ahead.
Mr Zhang said that Central Asia offers greater scope for co-operation, particularly across the real estate, energy and infrastructure sectors.
“I think Central Asia is a gold mine that is at its early stage of development and opening up,” he said.
Mr Zhang added that Central Asia requires more technology and investment from partners in infrastructure and property development, for example.
“I definitely see that the demand in the property space is a very real one,” he noted. “That is also one of the areas where we think Hong Kong enterprises have a very strong capability, given Hong Kong is also one of the major property markets globally.”
Beyond housing, Central Asia’s demand for hotels, office buildings and shopping malls is rising rapidly.
Mr Zhang pointed out that major expanding cities such as Astana and Almaty in Kazakhstan, and Tashkent in Uzbekistan, are all keen to leverage Hong Kong’s expertise in urban planning and public transport management.
He added that Central Asia faces enormous investment needs for mineral and natural gas processing facilities while actively developing renewable energy sources.
At the same time, local demand for professional services such as finance and healthcare continues to grow.
Asked how to draw lessons from the Middle East, Mr Zhang observed that Central Asia’s predominantly Muslim population shares cultural ties with the Middle East.
He also stressed that establishing a local team is essential when entering new markets to accurately gauge policy directions and foster mutual trust. Having already set up an office in the Middle East, his company plans to adopt a similar model in Central Asia.
He added that this Central Asian delegation is the largest organised by the current-term Government, surpassing last year’s Middle East mission, and features an increased presence of representatives from Chinese Mainland companies.
“This symbolises the further deepening of joint efforts to venture into the global market between the two,” Mr Zhang said.
