Chinese Consortium To Invest $85 Million In PSX
Faizan Hashmi 4 years ago Tue 03rd January 2017 | 11:50 AM
KARACHI, Jan 3 (UrduPoint / Pakistan Point News - 03rd Jan, 2017 ) : The Chinese consortium that acquired stake in psx will invest $85 million, a source with close knowledge about the deal told China Daily.
This is the first time for a Chinese bourse to acquire shares of a foreign stock exchange (PSX), reports prominent English daily Tuesday. "This investment will help broadening economic and financial collaboration between China and Pakistan and will help implement the Belt and Road Initiative and the China-Pakistan Economic Corridor," said an announcement from Shanghai Stock Exchange (SSE).
It is expected that the investment will bring experience, technological assistance and new products including options trading and futures trading may be activated. "Pakistan's market reform has been accelerating in recent years and the country has received backing from global institutions and overseas capital, making PSX more appealing to global investors than before," said Bao Kaijun, an analyst with Shanghai-based Kunyuan Investment Advising Services.
The Shanghai-Hong Kong Stock connect and Shenzhen-Hong Kong Stock connect are key to this opening.
Zhang Wenlang, analyst with Everbright Securities, said that as China's financial market continues to open up, it is likely that there will be more collaborations between Chinese financial institutions and overseas ones, including the Shanghai-London stock connect, which is under discussion.
A Chinese-led consortium, it may be noted has successfully bid to buy a 40 percent strategic stake in Karachi-based pakistan stock exchange. The consortium includes three Chinese bourses-Shanghai-based China Financial Futures Exchange, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange.
Together, they will take a 30 percent share. Two Pakistani financial institutions in the consortium, Pak-China Investment Company Limited and Habib Bank Limited, will take 5 percent each. The PSX was formed in January 2016 when the Lahore, Karachi and Islamabad stock exchanges consolidated into one bourse.