$2 billion likely to be injected in Pakistan economy

$2 billion likely to be injected in Pakistan economy

KARACHI: Chinese investors have shown interest in investing some $2 billion in the Pakistan Stock Exchange (PSX).

“Small Chinese stockbrokers having $52 billion in assets under management have shown interest in investing at least $2 billion in shares at the Pakistan Stock Exchange (PSX),” announced PSX Chairman Sulaiman S Mehdi at a press briefing on Friday.

However, Chinese investors are required to get some regulatory approvals from their regulators to invest this amount in Pakistan’s equity market, he said and added that Pakistan’s government should closely work on this proposal 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 $2.85 million.

The new system would connect the PSX with three Chinese international stock markets including the SZSE, Shanghai and Hong Kong exchanges. The linkage will allow cross-listing of companies and attract foreign investment in each 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 small investors. It will be a listed fund and will be initiated with 10-12 companies.