Islamabad: Chinese investors have renewed their long-term commitment to Pakistan’s capital markets after the resolution of regulatory issues by the Securities and Exchange Commission of Pakistan (SECP), setting the stage for increased investment and enhanced cooperation between the two nations.
According to Securities and Exchange Commission of Pakistan, a delegation from the Chinese consortium, led by the China Financial Futures Exchange (CFFEX) and including representatives from the Shanghai and Shenzhen stock exchanges, met with SECP Chairman Dr. Kabir Ahmed Sidhu and senior officials to discuss collaboration and expansion plans. This meeting is seen as a pivotal moment in the financial collaboration between Pakistan and China.
The consortium acknowledged regulatory approvals that allow it to increase its shareholding in the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL). The group also expressed appreciation for SECP’s support in restructuring the Pakistan Stock Exchange’s (PSX) property management, enabling the exchange to concentrate on its core business and strategic growth.
Attendees at the meeting included senior representatives of the Chinese consortium, such as Mr. You Hang, Chief Representative of CFFEX, Mr. Lou Fengsen, Senior Vice President of CFFEX, and Mr. Zhang Xiaofeng, Director of CFFEX. Other notable participants were Mr. Sung Zhenwen, Managing Director of Pak China Investment Company and Director of PSX, PSX Managing Director and CEO Farrukh Sabzwari, PMEX Non-Executive Director Nadeem Naqvi, SECP Commissioner Muhammad Ali Farid Khawaja, Executive Director Imran Inayat Butt, and Director Muhammad Shamoun.
Mr. You Hang conveyed confidence in Pakistan’s economic outlook and indicated the consortium’s intention to play a more significant role in the development of the country’s capital markets. Plans to launch cross-border Exchange Traded Funds (ETFs), facilitate investment flows between Pakistan and China, and strengthen market linkages through an established Joint Task Force were highlighted.
The delegation also announced initiatives to introduce advanced trading and settlement technologies, enhance market surveillance, support new financial products, improve liquidity, and contribute to investor education and capacity-building efforts.
SECP Chairman Dr. Kabir Ahmed Sidhu welcomed the consortium’s expansion plans and reiterated the Commission’s commitment to reforms aimed at enhancing market efficiency, attracting investment, and fostering innovation. He emphasized that stronger international partnerships and technological advancements would be instrumental in the ongoing development of Pakistan’s capital markets.
The meeting concluded with both parties reaffirming their dedication to expanding investment cooperation and bolstering Pakistan’s status as an emerging regional capital market.