Strategic Chinese shareholders of the Pakistan Stock Exchange have announced plans to expand their role in Pakistan’s capital market infrastructure after receiving regulatory approvals from the Securities and Exchange Commission of Pakistan.
Expansion Targets Key Market Institutions
During a meeting with SECP Chairman Dr. Kabir Ahmed Sidhu, the Chinese delegation shared plans to increase investment in two major institutions: the Central Depository Company and the National Clearing Company of Pakistan Limited.
Moreover, officials noted that these institutions play a central role in Pakistan’s post-trade financial ecosystem.
Consortium Includes Major Chinese Exchanges
The delegation represented a consortium that includes the China Financial Futures Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange.
Additionally, the consortium includes Pak China Investment Company and Habib Bank Limited.
Cross-Border Financial Products Under Discussion
The meeting also explored cooperation on new financial products. In particular, both sides discussed proposed cross-border exchange-traded funds that could provide investors in Pakistan and China access to each other’s capital markets.
As a result, officials confirmed the creation of a joint task force involving stock exchange representatives from both countries.
Focus on Technology and Market Development
Furthermore, discussions covered trading and settlement systems, market surveillance mechanisms, liquidity enhancement, investor awareness, and institutional capacity-building.
The Chinese consortium originally acquired a 40 percent strategic stake in the Pakistan Stock Exchange during 2016–17. Consequently, the latest expansion plan signals continued financial cooperation between the two countries.
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