Kazakhstan, Hong Kong Billionaires Li, Cheng, Yung Plan Fund, Premier Says

Bloomberg reports, “Kazakhstan has joined Hong Kong billionaires Li Ka-shing, Larry Yung and Cheng Yu Tung to form a $400 million private equity fund that will help Kazakh companies list in the city, Prime Minister Karim Massimov said. Kazyna Capital Management JSC, a unit of the country’s sovereign wealth fund, will initially contribute $100 million and four Hong Kong partners, including Li’s Cheung Kong (Holdings) Ltd., will provide $300 million, the prime minister said in an interview yesterday.

“In Hong Kong, guanxi is very, very important,” he said. “We have trust in them, they are very serious partners, and they have trust in the government of Kazakhstan.”

“Guanxi” is a Chinese term that refers to personal relationships. Kazakhstan, the largest energy producer in Central Asia, has the world’s 11th-biggest proven oil reserves and is becoming an increasingly important source of natural resources for China, as well as Russia. Getting the nation’s supply of minerals, including coal, iron ore, nickel, gold and uranium, to market requires billions of dollars of investment in infrastructure, Massimov said. “This is just initial; $400 million for these type of businesses is peanuts,” he said.”

Read more: Bloomberg

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