– What changes at the Kyrgyz Stock Exchange are most important for attracting foreign investors?
– Before making an investment decision, any investor assesses the macroeconomic situation in the country, the investment climate, the stability of legislation, and the availability of clear mechanisms for protecting capital. That is why it is especially important that the development of the stock market is now among the priorities of the state policy of the Kyrgyz Republic.
The capital market has received support at the highest level. In November 2022, President of the Kyrgyz Republic Sadyr Japarov signed Decree No. 376 “On Measures for the Further Development of the Stock Market and Exchange Activities.” The document provides for the accelerated development and digitalization of the stock market, improved accessibility of financial instruments for individuals and businesses, and the creation of favourable conditions for attracting investment into the country’s economy.
This is an important signal for international investors: the state views the stock market not as a separate segment of the financial system, but as one of the instruments for attracting investment and financing the economy.
In recent years, this policy has been followed by specific legislative and institutional changes. In 2025, amendments were introduced to the legislation of the Kyrgyz Republic on the securities market. One of the key innovations from the perspective of international integration was the simplification of the admission of securities of foreign issuers to circulation in the country. The legislation also provided opportunities for the issuance of international bonds and global depositary receipts, the admission of instruments issued by international financial organizations, electronic submission of documents by issuers, and other mechanisms aimed at expanding the market.
The next practical step was the approval in 2026 of new minimum listing requirements. A simplified admission procedure is provided for foreign issuers and international organizations, subject to compliance with international disclosure standards. This is particularly important because we want not only to attract foreign capital to Kyrgyz companies, but also to create a broader range of instruments for investors on the KSE.
At the same time, the market’s digital infrastructure is developing. In 2026, legal conditions were created for remote identification and verification of clients in the securities market. This makes it possible to receive investment services remotely and reduces administrative barriers, including for foreign investors.
Among the priorities of the Kyrgyz Stock Exchange itself are the modernization of trading infrastructure, expansion of the range of financial instruments, improvement of the quality of information disclosure and corporate governance, development of liquidity, and integration with foreign capital markets.
Ultimately, it should be as easy as possible for a foreign investor to obtain information about an issuer, gain access to the market, execute a transaction and settlement, and, if necessary, exit the investment. Our task is to gradually remove legislative and infrastructure barriers and make the KSE a clear, transparent, and accessible platform for both domestic and international investors.
– Which sectors and companies in Kyrgyzstan may be of interest to Kazakhstani capital?
– I would highlight several areas that combine economic potential with a clear rationale specifically for Kazakhstani investors. These include energy, including hydropower and renewable energy sources; mining and processing; the financial sector and fintech; transport and logistics; the agro-industrial sector; tourism; IT and telecommunications; and industrial production. These areas largely coincide with the priorities of the National Development Programme of the Kyrgyz Republic until 2030: industrialization, the development of Kyrgyzstan as a regional hub, agriculture, tourism, and green energy.
Projects that make it possible to use the advantages of several markets at once are particularly interesting for Kazakhstani capital: production in Kyrgyzstan followed by access to the EAEU market, logistics projects linked to regional transport corridors, as well as projects in energy and tourism infrastructure.
The greatest interest will be in companies that are ready to operate according to international standards: with a transparent ownership structure, IFRS reporting, a clear business model, high-quality corporate governance, and growth prospects. This is where the exchange can play an important role by identifying such companies and preparing them for access to the regional capital market.
– What prevents medium-sized businesses from making more active use of equity and bond issuance to raise financing?
– In my view, the problem is not so much limited access to the capital market as insufficient readiness on the part of the companies themselves.
Not all companies are ready to enter the stock market. Small and medium-sized businesses traditionally have a better understanding of banking products, while listing on an exchange is perceived as a more complex process: it is necessary to prepare a prospectus, conduct an audit, establish corporate governance, work with investors, improve transparency, and disclose information.
Nevertheless, in recent years we have seen growing business activity and interest in attracting investment through the stock market. At the end of 2025, the Kyrgyz Stock Exchange showed significant growth across virtually all key indicators:
- trading volume more than doubled;
- trading volume in corporate securities increased by more than 100%;
- market capitalization grew by 54%;
- trading in securities of listed companies increased significantly.
This indicates growing interest among businesses and investors in the organized capital market.
Today, the KSE is actively working with large and medium-sized businesses, creating favourable conditions for entering the stock market. Interest income and capital gains from securities issued by companies included in the highest and the next-highest listing categories are exempt from personal income tax and corporate income tax.
The exchange does not require a medium-sized company to immediately become a large public corporation. We offer intermediate instruments: small bond issues, private placements, and simplified procedures for small and medium-sized businesses while maintaining basic investor protection requirements.
– How can liquidity in a small stock market be increased and investors be given an opportunity to exit their investments?
– Liquidity cannot be created by a single measure — it requires an entire ecosystem.
First, the number of available financial instruments needs to be increased. The KSE strategy provides for the further concentration of trading in government securities on the exchange platform, the development of corporate instruments, foreign securities, and new market segments.
Second, market makers are needed to continuously maintain two-way quotations. We already use this approach in the precious metals market.
Third, it is necessary to increase the number of institutional investors — pension funds, insurance companies, investment funds, and banks — while at the same time developing the retail market. Our strategy provides for attracting at least 100,000 retail investors by 2030 and significantly increasing their participation in exchange turnover.
Finally, regional liquidity is particularly important for a small market. Access to the region’s stock markets needs to be provided not only to domestic but also to external investors. Therefore, mutual access between Central Asian stock exchanges is one of the practical tools for addressing the liquidity problem of our markets.
– Which requirements for information disclosure and investor protection are most important for strengthening confidence in the market?
– Confidence arises when an investor has sufficient information to make a decision and is assured that all market participants operate under equal conditions.
Therefore, the basic requirements should include financial statements prepared in accordance with international standards, a high-quality independent audit, timely disclosure of material facts and information on the ownership structure, ultimate beneficial owners, and corporate governance.
In the case of bonds, it is also important for investors to understand how the raised funds will be used and how the issuer intends to service the debt. For green, social, and other sustainable bonds, reporting on the use of proceeds and the achieved impact is additionally required.
Protection of minority shareholders, prevention of market manipulation and insider trading, as well as transparency of corporate actions, are equally important.
In the future, we would like investors to perceive Kyrgyzstan and Kazakhstan not as two completely separate markets, but as parts of a broader Central Asian investment space. It is precisely this regional scale that can increase the liquidity of our markets and make them more visible and attractive to international capital.
– What joint projects with Kazakhstani stock exchanges could facilitate mutual access for companies and investors to the markets of the two countries?
– Kyrgyzstan and Kazakhstan already have concrete results in this area. Our exchanges are gradually moving from general cooperation towards the creation of practical mechanisms for mutual access by companies and investors to the markets of the two countries.
One important step was the mutual recognition of listings. The Kazakhstan Stock Exchange, KASE, included the Kyrgyz Stock Exchange — specifically Category “A” of its official list — in the list of recognized stock exchanges.
This means that securities with a primary listing on the KSE under Category “A” may be included in KASE’s official list under a simplified procedure, provided that the issuer and the securities themselves meet KASE’s established requirements.
This is of great practical importance for Kyrgyz companies. An issuer that has already completed a listing on the Kyrgyz Stock Exchange gains a simpler route to the Kazakhstani market, access to a broader range of investors, and the potential opportunity to increase the liquidity of its securities.
Legislative conditions have also been created in the Kyrgyz market for the simplified admission of securities of foreign issuers. Thus, a regulatory framework is already being formed for freer movement of financial instruments between our markets.
The next step is to fill this mechanism with actual placements and transactions. It is important that mutual recognition of listings be used by companies in practice rather than remain only a regulatory possibility.
The second promising area is technological access for investors. Ideally, a Kazakhstani investor should be able to purchase securities of Kyrgyz issuers through a broker they are accustomed to working with, while a Kyrgyz investor should have similar access to the Kazakhstani market. The fewer additional procedures and intermediaries between an investor and the market of a neighbouring country, the greater the likelihood of actual cross-border investment.
The third area is the further development of depository and settlement infrastructure. Full mutual access requires a convenient mechanism for recording rights to securities, settlements, and conducting cross-border transactions. This is one of the key elements in forming a common investment space.
The fourth area is joint and parallel placements. For example, a Kyrgyz issuer could place bonds or shares while simultaneously attracting investors from Kyrgyzstan and Kazakhstan. Infrastructure projects, corporate bonds, as well as green and other ESG instruments are particularly promising in this respect.
Another interesting area is the development of joint regional investment products. This could be an index of Central Asian companies, an investment fund, or, in the future, an ETF comprising securities of companies from several countries in the region. Such an instrument would allow an international investor to gain diversified exposure to Central Asia through a single investment product.
Joint events — investment and B2B forums, business meetings, and other platforms for dialogue — are also useful. Kazakhstan has a well-developed base of institutional investors, so direct communication between Kyrgyz companies and Kazakhstani funds, banks, brokers, and other professional market participants can significantly expand opportunities for raising capital.
In addition, KASE is a shareholder of the Kyrgyz Stock Exchange. This creates a solid institutional basis for further deepening cooperation between our markets.
Thus, a certain foundation for integration has already been created. Our task now is to move from mutual recognition and regulatory opportunities to actual cross-border placements, investment, and trading
