Technology and philosophy: banking

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Wednesday, July 1, 2026

Kazakhstan Banks on Hong Kong for Offshore RMB Access

A bank supported by China, Altyn Bank, states that Kazakh investors are increasingly looking towards Hong Kong's dim sum bonds to secure long-term funding for local infrastructure projects.

A commercial bank based in Kazakhstan, supported by China Citic Bank, is looking to partner with financial organizations and investors from Hong Kong to establish innovative funding avenues for the Central Asian nation via Hong Kong's growing offshore RMB market.

Murat Baisynov, head of Altyn Bank, stated to the South China Morning Post that three customers from the bank based in Almaty are now considering issuing dim sum bonds in Hong Kong, a movement he anticipates will persist.

"Hong Kong continues to be the global leader in offshore yuan liquidity, connecting the biggest group of investors, banks, and systems involved in issuing yuan-denominated bonds," he stated.

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In Central Asia, this creates broader chances to draw in lasting investment for infrastructure, transportation, energy, and environmentally friendly development initiatives.

He mentioned that the bank, which is part of China Citic Bank, seeks to form strategic alliances with investment companies and institutional investors in Hong Kong in order to open up fresh funding avenues for the area via the offshore yuan market.

Since 2018, Altyn Bank has been under the control of China Citic Bank Corporation, following the acquisition of a 50.1 percent share from Kazakhstan's leading financial entity, Halyk Bank.

Baisynov emphasized the potential of Hong Kong under the leadership of the Chief Executive John Lee Ka-chiu Led a top-tier team to Kazakhstan and Uzbekistan recently to investigate fresh commercial opportunities against the backdrop of political instability.

A seasoned banker anticipates a significant increase in RMB-based transactions as economic and commercial relations between Kazakhstan and China, along with Hong Kong, grow stronger over the next few years.

He referenced the Development Bank of Kazakhstan’s first issue of a 2 billion yuan (US$280.8 million) dim sum bond in Hong Kong last September as proof of increasing enthusiasm for the currency.

"With increasing two-way trade with China, there is an rising need for financial transactions and payments carried out in [Chinese yuan]. For numerous companies, this method aids in lowering operational expenses and enables better handling of exchange rate fluctuations," he stated.

Enhancing the application of the Chinese yuan involves improving market liquidity and risk management tools—especially for the Yuan-Tenge exchange rate—as well as drawing in a wider range of global investors to collaborate with Central Asian entities.

He mentioned that Hong Kong, serving as a funding hub and entry point to the global financial network, plays an important part in enhancing these links.

Baisynov further mentioned that there is an increasing interest from Kazakhstan-based investors in spreading their assets across overseas markets, making global investments, and utilizing personal banking solutions.

He stated that Hong Kong has all the essential qualities required to address these changing demands.

He highlighted the significant opportunities for cooperation between Hong Kong, a global financial center, and Kazakhstan, a major economic and transportation hub in Central Asia.

Hong Kong signed 96 agreements worth $1.65 billion for Kazakhstan and Uzbekistan during Lee's five-day trip to Central Asia last week, spanning areas such as finance, technology, commerce, and media.

Cathay Pacific Airways The city's national airline has revealed intentions to start services to Almaty in the coming year. At the same time, the Hong Kong authorities have signed a deal with Uzbekistan, opening the door for carriers from both regions to establish a fresh non-stop connection.

Friday, June 26, 2026

CIMB & China CITIC Bank Boost China-ASEAN Linkages

The collaboration will facilitate international banking, commerce, and financial services along the route.

CIMB Bank has entered into an agreement with China CITIC Bank aimed at enhancing financial links between China and ASEAN .

The collaboration will primarily concentrate on Malaysia and Indonesia, while also promoting wider commercial, financial, and investment activities throughout the China-ASEAN region.

The partnership will integrate China CITIC Bank's domestic network within China with CIMB's presence across Southeast Asia.

Both bank clients are anticipated to receive access to financial services encompassing trade activities, payment processes, and international funding options.

The collaboration will further enhance the ability to process payments and clear transactions involving both the Chinese yuan and foreign currencies.

This could involve possible access to China's Cross-Border Interbank Payment System, internal RMB banking fund mechanisms, and offshore loans directed towards ASEAN economies.

Both financial institutions will examine collaboration regarding international treasury and liquidity management, covering services such as account setup, upkeep, and administration for businesses operating locally.

CIMB and China CITIC Bank will further assist clients' growth via reciprocal recommendations and consulting services.

Advisory assistance will include guidance on entering new markets, meeting legal standards, handling international deals, and exploring possibilities for business combinations.

Banks will further investigate collaborative efforts in syndicated loans within both global primary and secondary markets to enhance clients' availability of local and overseas funding.

Saturday, June 20, 2026

Bank Household Loans Surge 6.9 Trillion Won Amid Stock and Housing Boom

The bank sector's household loan volume rose by 6.9 trillion South Korean won last month, reflecting an over three-fold increase in the monthly growth rate. This spike was fueled by growing interest in stock investments after the KOSPI climbed and improved activity in real estate deals in the metropolitan area, resulting in higher demand for various types of individual loans such as credit loans and negative balance accounts along with mortgages.

As per the Bank of Korea's publication called *‘May Financial Market Trends,’* issued on the 11th, bank-based household loans rose by 6.9 trillion South Korean won during the previous month. This rise surpassed threefold the increase seen in April (2.1 trillion South Korean won) and also outperformed the figure for the corresponding period last year (5.2 trillion South Korean won). As a result, the total amount of household loans within the banking system climbed to 1,181.8 trillion South Korean won.

The expansion was driven by various types of loans such as personal credit loans, negative balance accounts, and equity-secured loans. These loans shifted from a decline of 600 billion South Korean won in April to a rise of 3.7 trillion South Korean won in May. According to the Bank of Korea, there was a substantial surge in loan requests due to major individual stock investments occurring alongside spending demands during the holiday season.

Certainly, the KOSPI climbed to 8,476 by late May, fueled by a booming semiconductor industry and hopes for better company profits, before reaching an all-time peak of 8,801 on June 2. Nevertheless, it subsequently declined due to growing concerns about potential interest rate increases from the U.S. Federal Reserve. Equity-focused mutual funds saw their balances rise by 58.8 trillion South Korean won, supported by higher valuations resulting from increasing share prices along with fresh investments amounting to 7.6 trillion South Korean won. Total assets managed by investment firms also expanded by 86.4 trillion South Korean won, reflecting a significant influx of capital into the equity markets.

Mortgage lending rose by 3.2 trillion South Korean won, marking an expansion compared to the prior month's rise of 2.7 trillion South Korean won. Although jeonse loans remained downward, this trend was due to higher property dealings focused on medium-to-low cost residences within the metropolitan area as well as greater interest in temporary payments for ongoing pre-owned new construction projects. Apartment transaction volumes in Seoul hit 8,500 units during April, representing a notable jump from the preceding month’s total of 5,500 units.

Corporate lending also kept increasing. In May, bank corporate loans rose by 10.6 trillion South Korean won, staying at a level comparable to the prior month's 10.7 trillion South Korean won. SME loans climbed by 5.4 trillion South Korean won as part of an initiative aimed at broadening productive financing, whereas loans for major corporations went up by 5.2 trillion South Korean won because of demands for working capital to settle corporate bonds.

On the contrary, corporate bond issuing decreased because of the pressure from increasing interest rates. As businesses turned to other financing options like bank loans, corporate bonds experienced a net withdrawal of 1.1 trillion South Korean won, with commercial paper (CP) and short-term bonds also moving toward net withdrawals.