China, Kazakhstan sign MOU on financial agreement

The Silk Road Fund signed a memorandum of understanding on a strategic partnership with Astana International Financial Center and a framework agreement with Astana International Exchange to subscribe for a portion of common shares through the China-Kazakhstan Production Capacity Cooperation Fund Co Ltd, a wholly-owned subsidiary of Silk Road Fund, the fund said on Friday.

The cooperation is expected to help better align China’s Belt and Road Initiative with Kazakhstan's new economic policy Nurly Zhol (Bright Path), strengthen China-Kazakhstan bilateral ties in key areas, advance Kazakhstan's financial reforms and the development of its capital market, and provide incentive for Kazakhstan's social and economic progress, according to a spokesman from the fund.

It also will allow Silk Road Fund to leverage its financial expertise to boost the two countries' cooperation in production capacity through financial partnerships, the spokesman said.

The subscription of common shares in Astana International Exchange by Silk Road Fund will be the first investment made by China-Kazakhstan Production Capacity Cooperation Fund Co Ltd.

The Astana International Financial Center is a financial free zone established in Astana, the capital city of Kazakhstan, following an order of President Nursultan Nazarbayev in June 2015, with the Astana International Exchange being one of the free zone’s core elements.

The China-Kazakhstan Production Capacity Cooperation Fund Co. Ltd., with a size of $2 billion, is solely sponsored by the Silk Road Fund and supports projects promoting cooperation in production capacity and investments in other relevant areas between China and Kazakhstan.