Chinese Strategic Investors Back Pakistan’s Capital Market Reforms

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

Following a recent meeting with the Chinese Investor Consortium, You Hang (Harry), Executive Vice President of the China Financial Futures Exchange (CFFEX), wrote to the SECP Chairman expressing gratitude for the organization’s proactive engagement and support in resolving key strategic matters related to Pakistan’s capital market infrastructure.

The consortium acknowledged SECP’s successful resolution of long‑standing issues, including approvals for the restructuring of PSX assets and enhancements to PSX’s strategic holdings in the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan (CDC). These actions align Pakistan’s market infrastructure more closely with international standards and reinforce the long‑term development prospects of the capital market.

The Chinese investors reaffirmed their commitment to deepening cooperation with Pakistan and conveyed optimism about the country’s future capital market growth. They noted that the recent reforms and policy support have created a favourable environment for expanded engagement by Chinese institutional investors.

The consortium also expressed a desire to collaborate closely with SECP, market institutions, and regulators in both nations to explore new avenues for partnership, including the introduction of innovative investment products, enhanced market connectivity, and greater participation of Chinese investors in Pakistan’s financial markets.

This development underscores the growing international confidence in Pakistan’s capital market reforms and highlights the strengthening financial ties between Pakistan and China. It is expected to support increased foreign portfolio investment, deeper market liquidity, and broader investor participation in the years to come.

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