A Chinese Consortium signed the Sale and Purchase Agreement to acquire 40 percent share of Pakistan Stock Exchange, a deal that is seen to further boost the stock market that is among the top gainers in the world in recent years.
The agreement was signed in Karachi between the PSX officials and the consortium comprising Chinese Finance Futures Exchange Company Ltd, Shanghai Stock Exchange, Shenzhen Stock Exchange, and Pakistan-China Investment Company and Habib Hank Ltd, the local partners.
The shares valued at $85 million were awarded to the consortium which was the highest bidder among the 17 groups that contested for the strategic equity shares in Pakistan’s stock market.
“This is the beginning of a new era,” China’s Ambassador to Pakistan Zhao Lijian said at the signing ceremony held in the port city of Karachi, the country’s commercial capital and home to the stock market.
According to the deal, the three Chinese Companies will jointly hold30 percent of the shares, while their Pakistani partners will share 5 percent each.
Pakistan Stock Exchange was established in January, 2016 after the merger of the country’s three main stock exchanges – Karachi Stock Exchange, Islamabad Stock Exchange and Lahore Stock Exchange.
Besides, the Chinese consortium, several international companies and groups had shown interests in acquiring stakes in PSX. According to media reports, the PSX plans to introduce infrastructure bonds, mostly to be used in the ongoing $46 billion China-Pakistan Economic Corridor (CPEC) project.