On September 9-12, 2024, for the primary time within the historical past of Kazakhstan, Almaty hosts the twenty sixth Annual Basic Assembly of the Asia-Pacific Affiliation of Central Depositories (ACG). The organizer is the Central Securities Depository of the Republic of Kazakhstan (KCSD).
On September 10, the panel discussions had been held with the participation of international audio system, in addition to heads of the Nationwide Financial institution of Kazakhstan, the Company of the Republic of Kazakhstan for Regulation and Growth of Monetary Market of Kazakhstan, KASE, and inventory market consultants. The work of the Kazakh and worldwide securities markets, digitalization, the usage of AI, bettering the standard of providers, danger administration of central depositories and plenty of others had been mentioned on the discussion board.
On the occasion, the Governor of the Nationwide Financial institution of Kazakhstan Timur Suleimenov famous that the Asia-Pacific area is a dynamic market with a excessive funding potential on account of sustainable financial growth, vital infrastructure investments, technological advances and a rising urge for food for cross–border funding.
On the identical time, in line with his phrases, constructing a robust institutional partnership between Central Asia and the Asia-Pacific area will open up unprecedented financial potential for each side.
The Governor of the Nationwide Financial institution of Kazakhstan additionally emphasised that Kazakhstan is a dependable nation for funding. The republic has attracted greater than $450 billion price of FDI over time of independence. In keeping with his phrases, that is the most important indicator among the many CIS international locations per capita. As well as, the nation exhibits financial progress. Final 12 months, Kazakhstan’s GDP reached 5.1% in 2023 on account of mining, manufacturing and providers. On the identical time, the Nationwide Financial institution of Kazakhstan has achieved a big discount within the inflation price to eight.4%. It’s anticipated to lower to five% in a 12 months.
Deputy Managing Director of the Worldwide Financial Fund (IMF) Bo Li assessed the event of the economies of the Caucasus and Central Asia, exhibiting resilience regardless of varied financial shocks. Bo Li famous that steady progress is anticipated amongst oil importers amid home demand, in addition to additional enlargement of carbon trade and oil exports. On the identical time, well-designed reforms, in line with him, might result in 5-7% progress in international locations over the subsequent 4-6 years.
Having stated that, new applied sciences, together with digital, even have a serious affect on many sectors – from manufacturing to healthcare and monetary providers. For example, he cited an IMF examine, whereby synthetic intelligence might have an effect on 40% of jobs globally and 60% of jobs in superior economies. Due to this fact, investments in digital expertise and social insurance coverage will likely be essential to assist the event of synthetic intelligence, bettering productiveness, and mitigating socio-economic dangers.
“The IMF is committed to help countries in implementing successful product policies and promote global cooperation, including strengthening the integration of financial infrastructure between Asia-Pacific and Central Asian countries” – Bo Li added.
Chairman of the Company for Regulation and Growth of the Monetary Market of the Republic of Kazakhstan Madina Abylkassymova emphasised that constructing mutually useful relations between the Asia – Pacific area and Central Asia is of strategic significance within the present circumstances of the worldwide monetary system growth.
Telling international audio system concerning the Kazakhstan inventory market, she famous its dynamic growth. The capitalization of inventory market quantities to $70 billion or 28% of the nation’s GDP. The amount of company bonds traded on KASE is $30 billion or 12% of GDP. During the last 5 years, the amount of attracted funding within the capital market amounted to $19 billion. The variety of retail buyers has reached 3 million, which exhibits their rising position as a supply of financing for enterprise, » -said Madina Abylkassymova.
Kazakhstan works out to make sure the combination of the infrastructure of the Kazakh inventory market into the ecosystem of worldwide capital markets. As well as, work is at present underway to allow worldwide accounting authorities similar to Euroclear and Clearstream can open direct accounts with the Central Depository, and banks to supply account operator providers.
Thus, the Central Securities Depository become regional settlement hub with a full vary of depository and banking providers.
In keeping with her phrases, the implementation of the rules of sustainable growth within the monetary market stays related. At the moment, all the required legislative and regulatory mechanisms have been created to stimulate the event of “green” financing.
To make sure interregional hyperlinks between capital markets, the Company along with the Nationwide Financial institution and the Ministry of Finance utilized for observer standing in ASEAN+3 Bond Market Discussion board. This essential platform provides a chance to alternate expertise in growth of bond markets.
Mark Gem, Chairman of the Danger Committee of Clearstream, famous that the present process is to unite the monetary market infrastructure between Asia-Pacific area and Central Asia on a world scale. In keeping with his phrases, the Central Securities Depository of Kazakhstan absolutely fulfills its mission and helps the bridge between the West and the East, offering many alternatives.
“Now is a time of great challenges, there are difficulties and risks in our work. Geopolitical reality can change the decades of established practice, and now we will have to change our priorities. Vulnerabilities are growing, climate change is also on the agenda. We see the development of digital tools, including AI, that might be against us. The regulator is becoming more specific and demanding. Central depositories are expected to be more efficient, faster, more transparent with lower costs and risks.”
Within the altering circumstances of the worldwide market, Chairman of KCSD, Adil Mukhamejanov, steered taking note of the a number of key areas by which cooperation will likely be particularly efficient for infrastructure organizations.
Firstly, the continued development of digital applied sciences, together with distributed ledger applied sciences, presents each alternatives and challenges. These improvements are harnessed to reinforce effectivity, transparency, and safety within the markets, whereas additionally addressing potential dangers.
Secondly, as the worldwide financial system continues to evolve, the significance of sustainable finance is turning into ever extra obvious.
“By integrating environmental, social, and governance (ESG) criteria into our operations, we can contribute to the broader global effort to combat climate change and promote inclusive growth, ” – added Adil Mukhamejanov.
Lastly, the regulatory atmosphere by which we function is turning into more and more advanced. The necessity for alignment and cooperation amongst our establishments is extra urgent than ever. By working intently with regulators and policymakers, we might help form a regulatory framework that helps innovation whereas safeguarding the integrity of the markets.
Reference:
ACG is an Affiliation of Central Securities Depositories of the Asia-Pacific area, established in 1997 with the primary aim of strengthening cooperation in varied sectors to enhance the effectivity of clearing and settlements. KCSD has been a member of the ACG for 17 years (since 2007).
The Central Securities Depository (KCSD) is a key infrastructure group of Kazakhstan’s monetary market within the sphere of post-trading providers and has been offering providers for greater than 25 years. It’s a single middle for recordkeeping of securities possession rights, settlement of all alternate and over-the-counter transactions. Furthermore, KCSD additionally supplies entry to worldwide securities settlement techniques for the native individuals.
As of January 1, 2024, whole quantity of monetary devices in nominal holding of KCSD amounted to KZT 126.61 trillion, recording a rise of 13.9% as compared with the earlier 12 months. The variety of securities points has additionally elevated, amounting to 2,386 points at first of 2024. Thus far, over 3 million brokerage accounts have been registered with KCSD.
