Chinese consortium plans to deepen investment in Pakistan capital markets

A Chinese consortium led by the China Financial Futures Exchange has announced plans to deepen investment in Pakistan's capital markets following meetings with the Securities and Exchange Commission of Pakistan in Islamabad.

The delegation also met senior officials to discuss regulatory approvals, cross-border financial products and long-term market development.

What is the Chinese consortium planning in Pakistan's capital markets?

The consortium, which includes the Shanghai Stock Exchange and Shenzhen Stock Exchange, plans to launch cross-border exchange-traded funds, introduce modern trading and settlement technologies and expand investment flows between the two countries.

It also aims to develop new financial products, improve liquidity and strengthen market surveillance through a joint task force with Pakistani counterparts.

What regulatory approvals has the consortium received?

The consortium welcomed recent approvals allowing it to increase its shareholding in the Central Depository Company and the National Clearing Company of Pakistan Limited. It also expressed appreciation for reforms linked to the Pakistan Stock Exchange's property management structure.

SECP Chairman Dr Kabir Ahmed Sidhu said regulatory changes are designed to improve market efficiency and attract foreign investment.

Who attended the SECP meeting on Pakistan-China financial cooperation?

The Chinese delegation included Chief Representative You Hang, Senior Vice President Lou Fengsen and Director Zhang Xiaofeng from the China Financial Futures Exchange.

Pakistani officials present included PSX Managing Director and CEO Farrukh Sabzwari and SECP Commissioner Muhammad Ali Farid Khawaja. You Hang said the consortium intends to take a larger role in developing Pakistan's capital markets.

How does this fit into broader Pakistan-China economic ties?

The expansion plans align with deepening financial cooperation under CPEC and broader Sino-Pakistani economic ties. The consortium's push into market infrastructure, investor education and financial product development signals a shift from passive shareholding toward active integration.

Both sides reaffirmed their commitment to strengthening investment cooperation and building long-term capital market linkages.