China vows to deepen capital market ties

Cross-border ETFs planned as SECP resolves regulatory issues

ISLAMABAD:

Chinese investors have reaffirmed their long-term commitment to Pakistan's capital markets following the resolution of key regulatory matters by the Securities and Exchange Commission of Pakistan (SECP), paving the way for increased investment and deeper cooperation between the two countries, according to an official statement issued on Monday.

A delegation of the Chinese consortium, led by the China Financial Futures Exchange (CFFEX) and comprising the Shanghai and Shenzhen stock exchanges, met SECP Chairman Dr Kabir Ahmed Sidhu and senior officials to discuss future collaboration and expansion plans.

The consortium welcomed regulatory approvals that enabled it to increase its shareholding in the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL). The delegation also appreciated SECP's support for the restructuring of the Pakistan Stock Exchange's (PSX) property management function, allowing the exchange to focus more effectively on its core business and strategic growth.

You Hang, Chief Representative of CFFEX, expressed confidence in Pakistan's economic prospects and said the consortium intends to play a larger role in the development of the country's capital markets. He highlighted plans to launch cross-border exchange traded funds (ETFs), facilitate greater investment flows between Pakistan and China, and strengthen market linkages through a joint task force already established for this purpose.

The delegation also announced plans to introduce advanced trading and settlement technologies, enhance market surveillance, support new financial products, improve liquidity, and contribute to investor education and capacity-building initiatives.

Chairman SECP Dr Kabir Ahmed Sidhu welcomed the consortium's expansion plans and reaffirmed the commission's commitment to reforms that enhance market efficiency, attract investment and promote innovation. He noted that stronger international partnerships and technological advancement would contribute significantly to the continued development of Pakistan's capital markets.

The meeting was also attended by Lou Fengsen and Zhang Xiaofeng of CFFEX, PSX Managing Director and CEO Farrukh Sabzwari, and other senior officials. The meeting concluded with both sides reaffirming their commitment to expanding investment cooperation and strengthening Pakistan's position as an emerging regional capital market.