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China buys 40% in Pak Stock Exchange

I can see that happening & shares of the most big companies are bought at very huge extent...Lives of Pakistanis & their govt will be disciplined by those Chinese corporates sooner or later.
Shares are not permanent unless you take long holdings. Once the share price falls, either the investor holds or sells share, same is the case with profit taking when share price rises. And fall or increase of share price of a single company doesnt effect atlarge.
And if a chinese firm holds 51% shares of any Pak company, it may invest to increase the company's business operations.
 
Shares are not permanent unless you take long holdings. Once the share price falls, either the investor holds or sells share, same is the case with profit taking when share price rises. And fall or increase of share price of a single company doesnt effect atlarge.
And if a chinese firm holds 51% shares of any Pak company, it may invest to increase the company's business operations.
You are right..Pakistan is selling & China buying by only betting on CPEC.Most profits will go to Chinese companies...
Also govt houses are controlled by big corporates.
 
You are right..Pakistan is selling & China buying by only betting on CPEC.Most profits will go to Chinese companies...
Also govt houses are controlled by big corporates.
When a Pak subsidiary of a chinese holding company earns profit, will they invest more to expand business operations and provide dividend to share holders or will they send their net profit income back to China? LOL. If they will earn, its expected they build their manufacturing plants here because labour, land and logistics are cheap in Pakistan. And one more thing, they will pay taxes to GOP while many of Pak companies dont pay direct taxes.
 
PSX becomes regional capital market, may launch CPEC bonds

KARACHI: The Pakistan Stock Exchange (PSX) became a regional capital market after the Chinese consortium signed the Share Purchase Agreement to acquire 40% stake in the bourse, officials said Friday.

PSX Chairman Munir Kamal hinted at the launch of CPEC’s (China-Pakistan Economic Corridor) infrastructure bonds for trading in the future after the Chinese, who are investing $54 billion in the corridor projects, take over management control of the market.

PSX Divestment Committee Chairman Shahzad Chamdia said the agreement inked that PSX would get listed at its own trading platform by June 2017.

At present, the stock market is in the process of offering another 20% shares (160 million) to general public, he said.

PSX emerges as Asia’s best-performing market in 2016

After this transaction, the 200 PSX brokers will be left with only 40% stakes. Earlier, they had 100% ownership of the market. Full ownership was a conflict of business interest, as they simultaneously were traders at the Exchange as well.

Chinese are expected to pay approximately $85.5 million to brokers in March for the acquisition of the 40% stakes (320 million shares for Rs28 per share).

Earlier, the Chinese-led consortium won the stakes through participation of competitive bidding on December 22, 2016.

The consortium comprises of Chinese Financial Futures Exchange Company Limited, Shanghai Stock Exchange, Shenzhen Stock Exchange, Pak-China Investment Company and Habib Bank Limited.

Finance Minister Ishaq Dar was also present at the agreement signing ceremony that took place at the Exchange.

The minister said the Chinese partners will bring their expertise and will take the market to the next level of developments.

“The index has reached [close to] 50,000 points from just 19,000 points three years ago and I…see no speculation and no inside trading in it,” he said.

Inviting attention of Kamal, the minister said his government has already set up an infrastructure fund like he (Kamal) was talking about CPEC infrastructure bonds for PSX.

The fund, called Pakistan Development Fund (PDF), is worth Rs150 billion. “Soon we will come to discuss the process of launching the fund [PDF] at PSX,” said Dar.

Chinese consortium wins bid for 40% stake in PSX

PDF has been setup as a Non-Banking Financial Company. Ministry of Finance has activated the company, said Dar, adding that many international financial institutions, including a Chinese fund, had taken interest to participate in it.

Hu Zheng, CEO, China Financial Futures Exchange (the leader of the Chinese consortium) said that the consortium has the backing of his government in acquiring the 40% stake in PSX.

The China’s securities and exchange company has also given its go ahead for the acquisition, he said.

Chinese Ambassador, Sun Wei Dong, said that Chinese will share their experience with PSX partners to bring reforms and launch new products.

This acquisition took place at a significant moment when CPEC-related tangible development is already in progress, he added.

The PSX benchmark KSE-100 Index increased 0.72%, or 351.01 points, to 49,364.83 points on Friday.

http://tribune.com.pk/story/1301852/psx-becomes-regional-capital-market-may-launch-cpec-bonds/
 
I don't know how it works but there are a total of 576 companies listed on Pakistan Stock Exchange (PSX). The aggregate market cap of which was said to be more than 8 trillion rupees last year.
Before the sale of this 40% share (please keep in mind the PSX was formed in January last year (Jan 2016) by consolidating the three stock exchanges of the country namely Lahore, Karachi and Islamabad), the only one survived was Karachi Stock Exchange.

So may be it depends on the total assets of KSE by the end of 2016. By the end of 2015 the the total assets of the Karachi Stock Exchange were about 14.1 billion Pakistani rupees ($134 million).

( An economist or a student of economy or a businessman can explain it better here on forum).
This is very bad for Pakistan if you ask someone of good knowledge in economics.
 
China was not the only bidder. It is another thing the deal goes to highest bidder and China happened to be the one that had a highest bid.

The fact that anyone thinks this "bidding" would actually allow any other "competitor" a fair playing field in comparison to China is laughable. We as a nation are always looking outside for saviours. Coming from an economics background, this sale does not make sense to me.

What's your view on this bro

I love your beard bro, no homo:p:.

Every man should have a beard!:cheers:
 
The fact that anyone thinks this "bidding" would actually allow any other "competitor" a fair playing field in comparison to China is laughable. We as a nation are always looking outside for saviours. Coming from an economics background, this sale does not make sense to me.

As I said I have little knowledge about economy related issue specially the complex ones so I can't give an expert opinion.

I merely was pointing out the fact that China was not the only bidder.
 
Ok putar ji .

Shares are there for sale for anyone
.

The whole country is on sale, sara China ko bhej do. Let China control everything then. Tax collection should also be sourced out to China, I mean I am sure this government can come out with an interesting way to package it together as bad debt and sell it on the sub prime market to China. Then we can wait for the PLA to come and collect taxes too.

Do you understand how vulnerable it leaves Pakistan to have 40% of Stocks held by a consortium of Chinese companies?
 
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