A roundtable discussion titled “Capital Market Day” was held in Almaty

A roundtable discussion titled “Capital Market Day” was held in Almaty with the participation of representatives of the Agency for Regulation and Development of the Financial Market, the National Bank, KASE, the Association of Financiers of Kazakhstan, professional securities market participants, banks, insurance organizations, institutional investors, as well as international consultants and experts.

During the roundtable, participants discussed key areas for the further development of the stock market, issues related to increasing its investment attractiveness, and expanding opportunities for financing the economy through market-based mechanisms.

Opening the event, Chairperson of the Agency Madina Abylkassymova noted that the capital market is one of the key mechanisms for long-term financing of the economy. “The capital market is a crucial mechanism of financial intermediation. Its role lies not only in channeling savings into investments, but also in creating a sustainable source of long-term financing for the state, the quasi-public sector, private companies, small and medium-sized businesses, as well as innovative enterprises,” the Head of the Agency stated. According to M. Abylkassymova, Kazakhstan’s capital market has demonstrated steady growth in recent years. The stock market capitalization reached KZT 39 trillion, accounting for around 24% of GDP, while the volume of corporate bonds exceeded KZT 16 trillion, or about 10% of GDP. The KASE trading system currently lists 89 share issues from 76 issuers and 717 corporate bond issues from 158 issuers.

The number of accounts in the Central Securities Depository exceeded 5 million, reflecting growing interest from both retail and institutional investors. At the same time, efforts continue to develop market infrastructure and integrate Kazakhstan’s capital market into the international financial system. At the same time, the Chairperson of the Agency emphasized that the potential for further development of the capital market remains significant.

Key challenges include insufficient market liquidity, a limited base of active investors, and the underutilization of the stock market by businesses as a source of long-term financing. In this regard, the Agency, jointly with the National Bank and international consultants, is developing the Capital Market Development Program through 2030 and a new Law “On the Capital Market.” The documents are being prepared with the participation of the international consulting company Oliver Wyman and representatives of the professional community. The documents are aimed at creating a modern and sustainable capital market model, increasing its competitiveness, and establishing conditions for attracting long-term investment into the economy.

The new legislation will provide for the expansion of the investor base, reform of the pension asset management system, development of financing instruments for SMEs, introduction of a “single window” principle, and full digitalization of securities issuance procedures. It also envisages the modernization of exchange, clearing, and depository infrastructure, the development of new financial instruments, and the further enhancement of corporate governance and investor protection mechanisms. Special attention will be given to the integration of Kazakhstan’s capital market into the international financial system, including the expansion of cooperation with international depository and settlement systems, as well as the removal of infrastructural and regulatory barriers for foreign investors.

As noted by the Head of the Agency, the development of a capital market strategy requires coordinated efforts by the government, market infrastructure institutions, and professional market participants. Following the roundtable discussion, participants put forward proposals and practical recommendations for the further development of Kazakhstan’s capital market.