Chinese investors deepen Pakistan capital market bet

June 15, 2026 (MLN): Chinese investors have expressed strong confidence in Pakistan’s economy and capital markets, reaffirming their long-term commitment to expanding cooperation and investment in the country’s financial sector.

A delegation of the Chinese consortium, led by the China Financial Futures Exchange (CFFEX) and comprising representatives of the Shanghai Stock Exchange and Shenzhen Stock Exchange, met SECP Chairman Dr. Kabir Ahmed Sidhu and senior officials to discuss future collaboration and expansion plans.

During the meeting, the Chinese delegation thanked Dr. Sidhu and the Securities and Exchange Commission of Pakistan (SECP) for the swift resolution of pending regulatory matters.

The consortium welcomed the regulatory approvals that enabled it to increase its shareholding in the Central Depository Company (CDC) and the National Clearing Company of Pakistan Limited (NCCPL), paving the way for deeper participation in Pakistan’s capital market infrastructure.

The meeting was attended by senior representatives of the Chinese consortium, including Mr. You Hang, Chief Representative of CFFEX, Mr. Lou Fengsen, Senior Vice President of CFFEX, and Mr. Zhang Xiaofeng, Director of CFFEX.

Also present were Mr. Sung Zhenwen, Managing Director of Pak China Investment Company and Director of PSX, PSX Managing Director and CEO Farrukh Sabzwari, PMEX Non-Executive Director Nadeem Naqvi, SECP Commissioner Muhammad Ali Farid Khawaja, Executive Director Imran Inayat Butt, and Director Muhammad Shamoun.

Officials also discussed the restructuring of the Pakistan Stock Exchange (PSX), under which the exchange’s stock trading and property management functions have been separated.

A separate company will be established to manage PSX’s property-related operations, enabling the exchange to focus more effectively on trading activities, market development and the introduction of new products.

Mr. You Hang expressed confidence in Pakistan’s economic prospects and said the consortium intends to play a larger role in the development of the country’s capital markets.

He highlighted ongoing efforts to launch cross-border Exchange Traded Funds (ETFs) between Pakistan and China and facilitate greater investment flows between the two countries.

He noted that a Joint Task Force comprising representatives of the exchanges of both countries has already been established to advance the cross-border ETF initiative and strengthen market linkages.

The delegation also announced plans to introduce advanced trading and settlement technologies, enhance market surveillance, improve market liquidity, support the launch of ETFs and new product lines, and contribute to investor education and capacity-building initiatives.

Welcoming the consortium’s expansion plans, Dr. Kabir Ahmed Sidhu reiterated SECP’s commitment to supporting Chinese investment in Pakistan’s capital markets and advancing reforms aimed at improving market efficiency, attracting investment and promoting innovation.

He said stronger international partnerships and technological advancement would play a key role in the continued development of Pakistan’s capital markets.

The meeting concluded with both sides reaffirming their commitment to expanding investment cooperation, strengthening financial ties between Pakistan and China, and supporting the long-term growth and modernization of Pakistan’s capital market infrastructure.

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