Stephenson Harwood advises Bakai Bank on landmark Hong Kong expansion

Stephenson Harwood advised Bakai Bank on establishing a bank branch in Hong Kong, marking the first overseas expansion by a bank from the Kyrgyz Republic.

Bakai Bank is one of the Kyrgyz Republic’s largest privately owned universal commercial banks. The landmark initiative strengthens financial and regulatory cooperation between Hong Kong and Central Asia, and is expected to, in the coming weeks, conclude with a memorandum of understanding between the Hong Kong Monetary Authority and the National Bank of the Kyrgyz Republic. The initiative also moves in lockstep with China’s Belt-and-Road policy.

“This is a genuinely groundbreaking matter,” said Katherine Liu, Partner at Stephenson Harwood. “Bakai Bank is the first Kyrgyz bank to establish a presence overseas, as well as the first Central Asian bank to establish a presence in Hong Kong, representing a defining moment for the bank and the international development of the Kyrgyz Republic’s financial services industry. We’re very proud to be a part of this momentous two-year journey.”

Subject to the Hong Kong Companies Registry’s approval, Bakai Bank will also be the first Kyrgyz company to register in Hong Kong.

Stephenson Harwood advised on all key aspects of the establishment and Bakai Bank’s restricted licence bank application, including regulatory licensing, corporate structuring, governance and compliance.

The Stephenson Harwood team comprised Financial Regulatory Partner Katherine Liu and Managing Associate James Wong.