While the government securities market can easily compete with currency exchange in popularity and traded volumes, the market of corporate securities is at the earliest stage of its development. Trades held on the Kazakhstan Stock Exchange do not reach considerable volumes, the trades at the OTC market are more active, though not substantial enough to promote the securities market development.

Analysts expect the corporate securities market to develop more rapidly in 1998. The legal entities are to become interested in issuing shares, and for that the legislative basis is to be improved and more favourable conditions are to be created for the joint-stock companies to enter the market. With the transition to international accounting standards it will be much easier for the JSCs to get international audit and to list the shares on the stock exchanges, requirements of which are usually rather tight.

Several reasons can be mentioned at present that hamper the corporate securities market development.

• First of all, the considerable delay in the sale of 'Blue Chip' company shares.
• Secondly, local investors do not have enough capital or courage to actively participate in the corporate securities market, as it is much less risky to invest in foreign currency in current conditions.
• Next the National Securities Commission sees a problem in qualifications of the management of many companies in that they are not knowledgeable enough to organise equity issue. In addition to this, the management is afraid to lose its control over the company in case of considerable spread of shares.
• Most expectations of stock market activation and development are closely connected with the realisation of Blue Chips privatisation.