China Financial Futures Exchange has welcomed recent regulatory measures taken by the Securities and Exchange Commission of Pakistan, saying the steps could help attract greater Chinese investment into Pakistan’s capital markets and encourage participation by institutional investors from China.
In a letter addressed to SECP Chairman Dr. Kabir Ahmed Sidhu, China Financial Futures Exchange Executive Vice President You Hang thanked the regulator for addressing several strategic issues that had remained unresolved for years and for supporting initiatives aimed at strengthening Pakistan’s capital market infrastructure.
According to the Chinese consortium, SECP approved the carve-out of real estate from the Pakistan Stock Exchange’s core operations and allowed PSX to raise its shareholding in the National Clearing Company of Pakistan and the Central Depository Company, bringing the exchange structure closer to international standards.
The consortium, which acquired a 40 percent stake in PSX in 2017, said the measures discussed with SECP could gradually open Pakistan’s capital market to Chinese institutional investors and deepen cooperation between regulators and market participants in both countries.
Officials have also shown interest in introducing new products at PSX, including cross-border exchange-traded funds, as part of wider efforts to broaden investment avenues and attract foreign portfolio inflows into Pakistan.
SECP Chairman Dr. Kabir Ahmed Sidhu said the reforms being undertaken in Pakistan’s capital market are helping strengthen investor confidence and create new opportunities for foreign investment.
