Chinese consortium plans fresh push Into Pakistan’s capital markets

Chinese investors are preparing to expand their presence in Pakistan's capital markets after securing regulatory approvals that cleared the way for higher shareholdings in key market infrastructure institutions and broader cooperation with local regulators.

The plans were discussed during a meeting between a delegation representing the Chinese consortium led by the China Financial Futures Exchange (CFFEX) and officials of the Securities and Exchange Commission of Pakistan (SECP), headed by Chairman Dr Kabir Ahmed Sidhu.

The consortium said it intends to deepen its involvement in Pakistan's financial markets through new investment initiatives, stronger institutional linkages and the introduction of modern market infrastructure.

Among the proposed initiatives are cross-border exchange traded funds (ETFs) aimed at facilitating two-way investment flows between Pakistan and China. The consortium also plans to strengthen market connectivity through a Joint Task Force established to advance cooperation between the two sides.

The investors welcomed recent approvals allowing them to increase their ownership stakes in the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL), describing the development as an important step in expanding their long-term role in Pakistan's financial sector.

The delegation also appreciated regulatory support for the restructuring of the Pakistan Stock Exchange's property management operations, a move expected to enable the exchange to concentrate more effectively on its core trading and business activities.

Speaking during the meeting, CFFEX Chief Representative You Hang expressed confidence in Pakistan's economic outlook and said the consortium was committed to playing a larger role in the development of the country's capital market ecosystem.

Beyond equity participation, the consortium outlined plans to introduce advanced trading and settlement systems, improve market surveillance capabilities, support the launch of new financial products, enhance liquidity and contribute to investor education and professional capacity-building programmes.

SECP Chairman Dr Kabir Ahmed Sidhu said the regulator remained committed to reforms that improve efficiency, encourage innovation and attract investment into Pakistan's capital markets. He added that stronger international partnerships and technological collaboration would help support the sector's long-term development.

The meeting was attended by senior representatives from the Chinese consortium and Pakistan's capital market institutions, including CFFEX Senior Vice President Lou Fengsen, Director Zhang Xiaofeng, Pak China Investment Company Managing Director and PSX Director Sung Zhenwen, PSX Managing Director and CEO Farrukh Sabzwari, PMEX Non-Executive Director Nadeem Naqvi, SECP Commissioner Muhammad Ali Farid Khawaja, Executive Director Imran Inayat Butt and Director Muhammad Shamoun.

The discussions concluded with both sides reaffirming their commitment to expanding investment cooperation and strengthening Pakistan's position as an emerging regional capital market.