The Chairman of Izp Group, Mr. Luo Feng (right) and the CEO of Astana Financal Center,Mr.Kairat Kelimbetov(Left), signed a strategic cooperation agreement
Chinese enterprises Izp Group and Astana International Financial Center (AIFC) signed a strategic cooperation agreement in Kazakhstan's capital city Astana on 3rd
of February, 2016. It established a solid foundation for China’s OBOR strategy to further promote in Kazakhstan, both sides will deepen cooperation to multi-faceted, multi-level, multi-field and finally to achieve mutual benefit.
Two sides will conduct cooperation in the following three main areas: the co-construction of clearing and settlement center in Central Asia, the co-construction of Central Asia and commodity trading center, the co-construction of OBOR big data center sub-centers in Central Asia and the Shanghai Cooperation Organization big data center. Firstly, The purpose of building Central Asia clearing and settlement center is to achieve Tenge – RMB direct clearing and settlement, this implement not only reduce business transaction costs and reduced the losses of Chinese investors due to Tenge devaluation, but also solve the worries of money reflux, thus to enhance Kazakhstan’s investment environment. It has a positive meaning for Kazakhstan stable currency and RMB internationalization. Secondly, the Central Asian commodity trading center project will concertrate on energy, mining, food and other commodities trading, Kazakhstan and neighboring countries have rich oil resources, while China enterprices have strong intentions in energy investment, established crude oil trading market participation and investment barriers cost reductions, will help more Chinese enterprises to participate in investment. Large data centers to Kazakhstan as an important node, to provide information and data services for the Central Asian countries along the "along the way" economic and trade activities, promote information sharing, cooperation and mutual trust, enhance performance. Investment threshold and the cost will significantly reduces after establish the oil trading market and also will attracted more Chinese enterprises participate in investment. To build big data center sub-center in Kazakhstan will provide information and data services along OBOR Central Asia countries, and it also will facilitate information sharing, mutual trust, and to enhance performance.
Kazakhstan is the start point country along OBOR, it is also a key point for Chinese OBOR strategy entering to the overseas. Kazakhstan is the early intervention in promoting the Silk Road economic belt and it has common interests with China. Astana International Financial Centre (AIFC) was signed to establishment by President Nazarbaev that known as the "state within a state", and it is a special economic zones written in national constitution, the use of Singapore tax system and incentives, with the goal to establish a financial center compared with London financial cente in Eurasia, overall, it is a most important strategical point in Kazakhstan.
China as Kazakhstan's second largest trading partner and the largest export market, and also it is China's largest investment destination in the CIS region. Orderly conduct of such cooperation , not only can further increase trade between China and Kazakhstan, but also will promote Kazakhstan to be a regional financial and trade clearing, settlement center in Central Asia, and effectively promote small and medium business, it contributes to further involvement in Kazakhstan’s financial construction, furthermore to enhance China’s international influence and to promote RMB internationalization.
AFIC president Mr. Kairat Kelimbetov:
October 2013 - November 2015, Kairat Kelimbetov work as former Kazahkstan’s central bank governor
January 2012 - October 2013, Kairat Kelimbetov work as former Kazahkstan’s vice-premier
President of Kazakhstan, Mr. Nursultan Nazarbayev delivered a speech at the WTO General Council: Astana international financial center will be an attractive economic zones. (Original link: http: //m.inform.kz/cn/article/2800952)