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On January 20, 2017, a consortium of the China Financial Futures Exchange (CFFEX), the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE), Pak-China Investment Company Limited and Habib Bank (Pakistan), together with the Equity Selling Committee of the Pakistan Stock Exchange (PSX), held in Karachi a signing ceremony for an agreement on purchasing equity of the PSX. Attending the ceremony were Ishaq Dar, Finance Minister of Pakistan, Zafar Hijazi, Chairman of the Securities and Exchange Commission of Pakistan (SECP), and Sun Weidong, Chinese Ambassador to Pakistan. Liu Shiyu, Chairman of the China Securities Regulatory Commission (CSRC) sent a congratulatory letter.
According to the agreement, the consortium will hold 40% equity of the PSX and the 3 Chinese exchanges will hold 30%. Next, the consortium will, in line with the reform required in the “Act of Stock Exchange’s Corporatization, Demutualization and Integration (2012)” of Pakistan, strengthen its efforts in an array of work items of the PSX in an all-round way, such as developing multi-tier stock, bond and derivatives markets, enhancing technological capabilities, improving investors’ cognitive ability and cementing the protection of investors, in a bid to propel the further and faster growth of the PSX and the Pakistani capital market.
The purchase is a major measure to implement China’s “One Belt and One Road” strategy and boost the construction of China-Pakistan Economic Corridor (CPEC). The SSE will consistently adhere to tactical reform, innovation and opening-up, take advantage of the “One Belt and One Road” strategy to speed up its internationalization led by the Shanghai-Hong Kong Stock Connect, strive to become a spearhead in the Chinese capital market to go global, and stride forward towards the goal of building itself into a world-class exchange.
