SECP chief says issues with Chinese investors resolved, paving way for ETF cooperation

Securities and Exchange Commission of Pakistan (SECP) Chairman Kabir Ahmed Sidhu on Tuesday said Pakistan has resolved longstanding issues faced by Chinese stock market investors, describing the development as a step towards rebuilding trust and strengthening capital market cooperation between the two countries.

Speaking during his maiden visit to the Pakistan Stock Exchange (PSX), Sidhu said the resolution of these concerns could help deepen financial ties and support future collaboration, including potential cross-border listings of exchange-traded funds (ETFs) in each other’s markets.

He said the SECP had recently held discussions with You Hang, a non-executive director on the PSX board and nominee of the China Financial Futures Exchange (CFFEX), adding that both sides had worked through issues that had persisted for a long time.

“We resolved the problem faced with for a very long period of time and hope to go some ways to develop mutual trust,” Sidhu said, adding that a task force had been formed to further build on the progress.

He said the regulator would closely monitor developments related to trust-building measures and ETF cooperation on a weekly and monthly basis.

Sidhu added that Pakistan’s parliament was close to completing amendments to insurance sector laws aimed at expanding the industry, attracting new entrants including foreign insurers and reinsurers, and increasing competition to improve services for policyholders.

He said the insurance sector remained underdeveloped despite its importance to the economy, noting that reforms were intended to revitalise competition and product diversity.

“They are only a short while away then it is going to be enacted as a law,” he said regarding the legislative process.

The SECP chairman said the regulator aims to raise the number of capital market investors to 2.5 million from around 600,000 at present.

He also highlighted the recent launch of the Capital Market Development Fund (CMDF), developed in collaboration with key capital market institutions, which is intended to improve financial literacy and broaden participation in Pakistan’s capital markets.