Chinese investors back SECP reforms, signal deeper market cooperation

Chinese strategic investors in the Pakistan Stock Exchange (PSX) have expressed confidence in Pakistan’s capital markets and welcomed recent reforms introduced by the Securities and Exchange Commission of Pakistan under Chairman Dr. Kabir Ahmed Sidhu.

In a letter to the SECP chairman after a recent meeting with the Chinese Investor Consortium, You Hang (Harry), Executive Vice President of China Financial Futures Exchange, thanked the SECP leadership for engagement on strategic issues linked to Pakistan’s capital market infrastructure.

The Chinese investors acknowledged SECP’s role in resolving long-pending matters, including approvals related to the restructuring of PSX assets and the enhancement of PSX’s strategic shareholding in the National Clearing Company of Pakistan Limited and the Central Depository Company of Pakistan.

The consortium said these steps have brought Pakistan’s market infrastructure closer to international standards and improved the long-term development prospects of the capital market.

The Chinese side also reaffirmed its commitment to expanding cooperation with Pakistan and said recent reforms and policy support had created a more favourable environment for institutional investors from China.

The investors said they intended to work with SECP, market institutions and regulators in both countries to explore cooperation in new investment products, market connectivity and greater participation by Chinese investors in Pakistan’s financial markets.

The development comes as Pakistan seeks to deepen foreign investor participation in its capital markets and strengthen financial cooperation with China.