Chinese investors eye bigger role in Pakistan capital market

June 24, 2026 (MLN): China Financial Futures Exchange (CFFEX) has welcomed the Securities and Exchange Commission of Pakistan’s (SECP) efforts aimed at facilitating Chinese investment in Pakistan’s capital market, while signaling greater interest from Chinese investors in the country’s financial sector.

CFFEX Executive Vice President Yu Hong wrote a letter to SECP Chairman Dr. Kabir Ahmed Sidhu, expressing gratitude on behalf of the Chinese Investor Consortium and acknowledging the regulator’s support in addressing key matters related to the consortium’s investments in Pakistan.

In his letter, Yu Hong appreciated Dr. Sidhu for resolving several long-pending strategic issues concerning the Chinese consortium.

He specifically highlighted SECP’s approval for the carve-out of real estate from the Pakistan Stock Exchange’s (PSX) core operations and consent for PSX to increase its shareholding in the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company (CDC).

The Chinese consortium noted that these measures have helped align Pakistan’s market infrastructure with international practices and have removed important obstacles related to expanding Chinese investment in Pakistan’s capital market infrastructure.

Yu Hong stated that the consortium views the future of Pakistan’s capital markets positively and believes that the initiatives discussed with SECP will gradually introduce Pakistan’s capital market to Chinese institutional investors.

He added that the consortium would continue working closely with SECP, Chinese regulators, and market participants in both countries to promote investment cooperation.

The consortium also expressed interest in expanding Chinese participation in Pakistan’s capital markets, including efforts aimed at increasing investment opportunities and strengthening market linkages between the two countries.

According to the information provided, Chinese investors are interested in introducing new products at the Pakistan Stock Exchange, including cross-border Exchange Traded Funds (ETFs), which could further enhance cooperation between the Pakistani and Chinese capital markets.

The developments are expected to support the creation of new opportunities for foreign investment in Pakistan’s capital market, while ongoing reforms are contributing to stronger confidence among international investors.

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