Chinese consortium signals bigger role in Pakistan capital markets

ISLAMABAD: Chinese investors have reiterated their long-term interest in Pakistan’s capital markets after key regulatory issues were resolved by the Securities and Exchange Commission of Pakistan, according to an official statement issued on Monday.

A delegation representing a Chinese consortium, led by the China Financial Futures Exchange and including the Shanghai and Shenzhen stock exchanges, met SECP Chairman Dr Kabir Ahmed Sidhu and other senior officials to discuss future cooperation and plans for expansion.

According to the statement, the consortium welcomed the regulatory clearances that allowed it to raise its shareholding in the Central Depository Company and the National Clearing Company of Pakistan Limited. The delegation also acknowledged the SECP’s support for restructuring the Pakistan Stock Exchange’s property management function, a step intended to let the exchange concentrate more effectively on its core operations and long-term strategy.

Plans for market development

You Hang, chief representative of the China Financial Futures Exchange, conveyed confidence in Pakistan’s economic outlook and said the consortium wanted to take on a broader role in the growth of the country’s capital markets. The official statement said he pointed to plans for launching cross-border exchange traded funds, encouraging stronger investment flows between Pakistan and China, and deepening market connections through a joint task force that has already been formed for that purpose.

The delegation also shared plans to bring in more advanced trading and settlement systems, strengthen market surveillance, back the introduction of new financial products, improve liquidity, and contribute to investor education and capacity-building programmes.

SECP reiterates reform commitment

Dr Sidhu welcomed the consortium’s expansion proposals and reaffirmed the regulator’s commitment to reforms aimed at improving market efficiency, attracting investment and promoting innovation. According to the statement, he said stronger international partnerships and technological progress would play an important part in the continued evolution of Pakistan’s capital markets.

The meeting was also attended by Lou Fengsen and Zhang Xiaofeng of CFFEX, Pakistan Stock Exchange Managing Director and Chief Executive Officer Farrukh Sabzwari, along with other senior officials. It ended with both sides reaffirming their intention to expand investment cooperation and further strengthen Pakistan’s standing as an emerging regional capital market.