KARACHI: Chinese investors have shown interest in investing some $2 billionin the Pakistan Stock Exchange (PSX).
“Small Chinese stockbrokers having $52 billion in assets under managementhave shown interest in investing at least $2 billion in shares at thePakistan Stock Exchange (PSX),” announced PSX Chairman Sulaiman S Mehdi ata press briefing on Friday.
However, Chinese investors are required to get some regulatory approvalsfrom their regulators to invest this amount in Pakistan’s equity market, hesaid and added that Pakistan’s government should closely work on thisproposal to mature the proposed Chinese investment.
Mehdi said the PSX had signed a contract with the Shenzhen Stock Exchange(SZSE) to acquire a new trading and surveillance system at a cost of $2.85million.
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The new system would connect the PSX with three Chinese international stockmarkets including the SZSE, Shanghai and Hong Kong exchanges. The linkagewill allow cross-listing of companies and attract foreign investment ineach other’s stocks.
Mehdi said the PSX is also planning to launch an Exchange Traded Fund (ETF)by January next year to provide investment opportunities to local smallinvestors. It will be a listed fund and will be initiated with 10-12companies.
