Chinese-Led Consortium Acquires 40% Stake in Pakistan Stock Exchange

A Chinese-led consortium that includes three Chinese exchanges and two Pakistani financial institutions, has signed a final deal to purchase a 40-percent stake in the Pakistan Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term. The bourse's market capitalization from 558 listed companies is $77 billion.

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The group includes China Financial Futures Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (CFFEX), Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), Pak China Investment Company Limited and Habib Bank Limited.

The three Chinese exchanges will take up 30% stake, through a deal valued at $85 million, while their Pakistani partners will pick up 5% each, the maximum permitted to a single institution under the regulations.

The Karachi-based Pakistan Stock Exchange (PSX), which was formed by consolidation of Karachi, Islamabad and Lahore stock exchanges, has been one of the best-performing markets in Asia in 2016, with its benchmark KSE 100-stock index gaining more than 40 percent this year.

Although the bourse offers trading in stocks, bonds and derivatives, in fact it’s almost entirely dependant on the ready cash market. There is no options trading while futures were almost non-active. As such, the deal could give Pakistan’s only national stock exchange a new international look with the entry of such mega players.

This approach is also expected to bring in investment, experience, technological assistance and new products. In addition, the investment will help promote economic and financial cooperation between China and Pakistan.