Chinese strategic shareholders of the Pakistan Stock Exchange (PSX) have decided to deepen their presence in Pakistan’s capital markets by increasing their investments in key market infrastructure institutions, including the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL).

The development was announced during a meeting between a high-level delegation of the Chinese consortium and Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu. The consortium comprises the China Financial Futures Exchange (CFFEX), Shanghai Stock Exchange, and Shenzhen Stock Exchange, which are among the strategic investors in the PSX.

According to an official statement, the SECP has granted the necessary regulatory approvals, enabling the Chinese consortium to proceed with plans to increase its shareholding in both CDC and NCCPL. The approvals are expected to strengthen Pakistan-China financial cooperation and support the continued development of Pakistan’s capital market infrastructure.

During the meeting, discussions focused on capital market growth, investment promotion, technological modernization, and the introduction of new financial products aimed at broadening market participation and improving efficiency.

The Chinese delegation appreciated the SECP’s efforts in resolving long-standing regulatory matters and facilitating approvals that pave the way for greater collaboration between financial institutions of both countries.

The delegation also welcomed regulatory approval for the transfer of the Pakistan Stock Exchange’s property management operations to a separate company under a Real Estate Investment Trust (REIT) structure. The move is expected to allow the exchange to focus more effectively on its core functions, including market development, product innovation, and strategic expansion.

The Chinese delegation was led by Yu Hong, Chief Representative of the China Financial Futures Exchange, who expressed confidence in Pakistan’s economic prospects and the long-term potential of its capital markets. He reaffirmed the consortium’s commitment to playing a more active role in supporting the growth and modernization of Pakistan’s financial sector.

Both sides also discussed the early launch of cross-border Exchange Traded Funds (ETFs), which could provide investors in Pakistan and China with greater access to each other's capital markets. A joint task force comprising representatives from exchanges of both countries has already been established to advance this initiative.

In addition, discussions covered the adoption of modern trading and settlement technologies, enhancement of market surveillance systems, development of new investment products, improvement in market liquidity, and initiatives aimed at strengthening investor awareness and capacity building.

The expanded investment commitment by Chinese strategic shareholders is viewed as a positive signal for Pakistan’s financial markets and reflects growing international confidence in the country's capital market reforms and long-term growth potential.