The meeting took place on the sidelines of the Second Tian Shan Central Asia Economic Cooperation Forum. The fund remains under development, with specific shareholder quotas and an official launch timeline yet to be disclosed.
How did the joint direct investment fund initiative originate?
According to the Ministry of National Economy, the initiative was proposed by Kazakhstan during a meeting between the heads of state of both countries in Shanghai this July. The parties are currently structuring a Kazakh-Chinese direct investment fund with a preliminary target volume of up to $200 million and the potential for future expansion.
To accelerate the rollout, Zhumangarin proposed designating responsible financial institutions in both countries to draft common operational principles.
What financing mechanisms are planned for the Trans-Caspian corridor?
The Ministry of National Economy outlined three main financing tools currently taking shape:
- Kazakh Invest Fund involving Silk Road Finance Corporation;
- A Kazakh-Chinese direct investment fund involving Baiterek National Managing Holding and Silk Road Fund;
- Project debt and insurance financing mechanisms involving Baiterek Holding, Development Bank of Kazakhstan, China Development Bank, China EximBank, Bank of China, ICBC, Sinosure, and other financial institutions.
Zhumangarin suggested integrating existing and emerging mechanisms into a single Kazakh-Chinese "one-stop window" for project financing and insurance without creating a new entity. This structure would enable the preparation of comprehensive financial packages for priority projects, combining long-term lending, insurance coverage, guarantees, RMB-denominated funding, and equity participation where appropriate.
What are the next steps for the initiative?
According to the Ministry of National Economy, the sides plan to select several pilot projects and guide them through every stage—from investment approval to financial closing. This process aims to identify and eliminate systemic bottlenecks that prolong major investment cycles. The delegations also discussed expanding cooperation with the Export-Import Bank of China on transport and utility infrastructure projects.
According to a press release by the Ministry of Finance from the same meeting, infrastructure priorities under review also include the Almaty metro expansion, Astana transport infrastructure, the Centre-West highway construction, and the modernisation of the capital's water supply facilities.
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FAQ
### What is the target size of the Kazakh-Chinese direct investment fund?
According to the Ministry of National Economy, the preliminary target is up to $200 million, with room for future increases. This is a planning target under review, not paid-in capital of an active fund.
### Who proposed creating the fund?
According to the ministry, Kazakhstan proposed the initiative in July during a bilateral meeting of the heads of state in Shanghai.
### What projects will the fund support?
According to the Ministry of National Economy and the Ministry of Finance, the primary focus is the development of the Trans-Caspian International Transport Route (Middle Corridor), alongside other infrastructure projects discussed, such as the Almaty metro.
### When will the fund be established?
No timeline was specified in the official releases. The initiative is currently under study, with the immediate step being the appointment of lead financial institutions by both nations.
### Is this news related to China?
Yes. The talks were held with China's Minister of Finance, and Chinese institutions such as Silk Road Fund, China Development Bank, and China EximBank were noted. Share allocations and specific project lists were not disclosed, and this article makes no further inferences.
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- Setting up a project company: Company registration in Kazakhstan
Sources
- Ministry of National Economy of the Republic of Kazakhstan (gov.kz), 2 November: https://www.gov.kz/memleket/entities/economy/press/news/details/1322206?lang=ru
- Ministry of Finance of the Republic of Kazakhstan (gov.kz), 2 November: https://www.gov.kz/memleket/entities/minfin/press/news/details/1322328?lang=ru
Illustration: AI-generated, not a real photograph.