Capital market delegation visits China, signs MoUs

KARACHI: A high-level delegation from Pakistan’s capital markets recently visited China, the PSX informed on Friday.

During the one-week visit, the delegation engaged with key Chinese financial institutions, including the China Securities Regulatory Commission (CSRC), the China Securities Depository and Clearing Corporation (CSDC), the Securities Association of China (SAC), the Asset Management Association of China (AMAC), the China Financial Futures Exchange (CFFEX), the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE), the Shanghai Futures Exchange (SHFE), and CITIC Securities Co Ltd.

The primary goal of the visit was to deepen collaboration between Pakistan and China’s capital markets, explore opportunities for cross-border investment products, and enhance market access and investor participation for both Pakistani and Chinese entities.

The delegation was led by Chairperson of the Securities and Exchange Commission of Pakistan (SECP) Akif Saeed, and had Chairperson of the Pakistan Stock Exchange (PSX) Dr Shamshad Akhtar, CEO of the PSX Farrukh H Sabzwari, Chairperson of the National Clearing Company of Pakistan Limited (NCCPL) Muneer Kamal, and other senior SECP executives as its members.

During the visit, Sabzwari signed memorandums of understanding (MoUs) with the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and China Financial Futures Exchange (CFFEX). These MoUs mark a significant milestone in strengthening ties and enhancing cooperation between the PSX and these leading Chinese exchanges.

The MoUs aim to foster bilateral collaboration for capacity building, promote mutual growth opportunities, and formalise future interactions for the benefit of Pakistan’s capital market. Notably, the MoUs also facilitate collaboration on launching new financial products such as exchange traded funds (ETFs), promoting the listings of China-Pakistan joint venture companies, and organising joint conferences and events to engage market participants.

Speaking on the occasion, Saeed said, “The MoUs will lead to capacity building through strengthened bilateral cooperation and will help develop Pakistan’s capital market in line with international best practices, which will ultimately contribute to the long-term development of Pakistan’s economy.”

Dr Shamshad Akhtar said, “This collaboration builds upon the foundation laid in 2016 when 40 per cent of PSX shares were divested to a Chinese consortium of anchor investors. These MoUs not only symbolise the deepening of bilateral relations but also underscore the growing strength of financial and economic ties between both countries.”

Sabzwari said, “I extend my congratulations to the leadership and teams of the PSX and the three Chinese exchanges for signing these momentous MoUs, which will help promote bilateral partnerships and drive the development of Pakistan’s capital market. These agreements will also enable us to take the next step towards the joint launch of cross-border ETFs.”