The Shanghai Stock Exchange Plans To Acquire Stake In Pakistan Stock Exchange
The Shanghai Stock Exchange (SSE) is in the process of acquiring a stake in the Pakistan Stock Exchange (PSX), a bid which is in line with China’s Belt and Road Initiative, according to industry insiders.
The Chinese market operator plans to acquire a stake of up to 40 percent in the Pakistan Stock Exchange Limited (PSX), according to Caixin media. If such a move goes through, the acquisition will be the first time a Chinese stock exchange has bought a stake in a foreign one. In January this year the Pakistan Stock Exchange was formed after the merger of the country’s three bourses in Islamabad, Karachi and Lahore.
The Nikkei Asian Review said in an October 2 report that Shanghai was one of two stock exchanges to submit letters of intent, citing Ayyaz Afzal, former CEO of the Islamabad Stock Exchange, and director of a unit under the Pakistan Stock Exchange. Afzal mentioned the other bidder was another bourse from the Middle East. Nadeem Naqvi, managing director of the Karachi Stock Exchange, told Reuters that bidders have to submit their letters of intent by October 21, and the “final outcome will be known by early November.”
Source: China – Pak Economic Corridor – CPEC