The Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC) have witnessed a new milestone in capital market cooperation. On June 15, 2026, Pakistan Stock Exchange (PSX) welcomed its first listed Chinese-funded company. As the largest shareholder of PSX, the Chinese Consortium led by China Financial Futures Exchange (CFFEX) played an active role in facilitating the landmark listing. Setting a host of new records in Pakistan’s capital market, the IPO ushers in a new chapter for CPEC cooperation, which has expanded from industrial cooperation to the integration of industry and capital market.
The listed entity, Service Long March Tyres Limited (SLM), is a joint venture between China’s Chaoyang Long March Tyre Co., Ltd. and Pakistan’s Servis Group, with the Chinese side holding approximately 43% of its shares prior to the listing. As Pakistan’s largest manufacturer of all-steel radial tyres, the company commands over 55% of the local market share. It is also a core tyre exporter of Pakistan, with products exported to overseas markets including the United States and Brazil.
This record-breaking IPO secured a fundraising scale of PKR 7.77 billion (approximately USD 28 million), making it the largest private-sector IPO in Pakistan. During the book-building phase, the offering attracted total subscriptions of PKR 69.4 billion (approximately USD 250 million), achieving a 16.7-time oversubscription within merely 5 seconds. The phenomenal performance set new highs on PSX in both subscription amount and speed.
Over the past decade since 2017, when CFFEX together with the Shanghai Stock Exchange and Shenzhen Stock Exchange took a strategic stake in PSX as a consortium, the Chinese Consortium has continuously supported PSX in improving corporate governance, upgrading technological systems, optimizing financing mechanisms and advancing international development. These efforts have been dedicated to building PSX into a high-quality capital market platform that serves the real economy of the two countries and the projects under BRI. The successful listing of SLM stands as another landmark achievement stemming from the long-term commitment and joint efforts of PSX’s Chinese shareholders. It also serves as a successful example of leveraging capital markets of Belt and Road countries to support Chinese-funded cross-border industrial entities. The breakthrough will inject fresh impetus into the all-weather strategic cooperative partnership between China and Pakistan and advance the high-quality development of the Belt and Road Initiative.
Mr. You Hang, Executive Vice President and Member of the Party Committee of CFFEX, as well as Chinese Shareholder Director of PSX, led a delegation to attend the listing ceremony and delivered a speech. He stated that SLM’s successful listing fully embodies industrial collaboration, technology transfer and capital empowerment between China and Pakistan. It also showcases the fruitful outcomes of Chinese shareholders’ sustained support for PSX in serving the real economy and fostering high-quality listing resources, establishing a clear benchmark for more China-Pakistan cooperation projects to seek listings on PSX. Since acquiring stakes, the Chinese consortium has continuously boosted PSX’s financing capacity and international profile, building an efficient capital market platform for Chinese enterprises to access and integrate into Pakistan’s market.
Proceeds from this IPO will be mainly used for the construction of a new production plant for passenger car radial tyres. The total investment of the project is approximately 22.56 billion rupees, and the plant is expected to be put into operation in January 2028. Upon completion, SLM will expand its business from truck and bus tyres to passenger car tyres. This will further improve Pakistan’s tyre industrial chain, reduce reliance on imports, boost local manufacturing strength and export competitiveness, and create more jobs for local residents. The issue price was set at 19.95 rupees, hitting the upper limit of the pricing range and representing a 40% premium over the floor price, a testament to global investors’ recognition of SLM’s fundamentals, technical strength, production capacity and export prospects.
