Chinese Exchange Welcomes SECP Reforms to Boost Investment in Pakistan

China Financial Futures Exchange has welcomed recent measures taken by the Securities and Exchange Commission of Pakistan, saying the reforms could pave the way for greater Chinese investment in 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.

The Chinese consortium said SECP had approved the carve out of real estate from Pakistan Stock Exchange’s core operations and allowed PSX to increase its shareholding in the National Clearing Company of Pakistan and the Central Depository Company, bringing the exchange closer to international practices.

The consortium, which acquired a 40 percent stake in PSX in 2017, said it expects the initiatives discussed with SECP to gradually introduce Pakistan’s capital market to Chinese institutional investors and deepen cooperation between regulators and market participants in both countries.

Officials have also expressed interest in introducing new products at PSX, including cross-border exchange-traded funds, as part of broader efforts to expand investment opportunities and attract foreign portfolio flows into Pakistan.

SECP Chairman Dr. Kabir Ahmed Sidhu said reforms undertaken in Pakistan’s capital market are helping strengthen investor confidence and create new opportunities for foreign investment.