China buys 40% in Pak Stock Exchange

[Pakistani E]

thanks bro
maine to is laye rakhi hay kyu kay is kay bagir chota bacha sa lagta hon

Yahi to trick hai, it separates the men from the boys. Dari Khappayy

 

[Hell hound]

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?

that what i am worried about we are giving too much leverage to china on us

Yahi to trick hai, it separates the men from the boys. Dari Khappayy

 

[marbella]

If china is involved it must be good !!

 

[ranadd]

My good fellows in Pakistan. Stop this madness.

 

[Mo12]

that what i am worried about we are giving too much leverage to china on us

you should diversify and find different owners other than china all the time.

 

[Hell hound]

you should diversify and find different owners other than china all the time.

well thats the exact thing i was advocating in my post. putting all of your eggs in one basket is never a good idea.we need European and american investors too so we could learn their way of governance and standards

 

[Mo12]

well thats the exact thing i was advocating in my post. putting all of your eggs in one basket is never a good idea.we need European and american investors too so we could learn their way of governance and standards

Russia would be good too.

 

[Hell hound]

Russia would be good too.

bro even nicaragua will be great. we need foreign investment from where ever we can get .i am not against Chinese investment but diversification is also a necessity we can't let a single country have too much influence on us.be it saudia,china or america

 

[Kaniska]

well thats the exact thing i was advocating in my post. putting all of your eggs in one basket is never a good idea.we need European and american investors too so we could learn their way of governance and standards

Even you can bring Arab investors who are sitting with pile of money...Multiple stakeholder is always safe...

 

[Clutch]

My good fellows in Pakistan. Stop this madness.

CPEC driving the Indians like you mad?... well then... give me more CPEC...

This is a great move by PSX ... brings it online with other modern exchanges around the world. Coming of age.

 

[somebozo]

This week a U.S. panel that examines foreign deals for potential national security concerns cleared the purchase of the 134-year-old Chicago Stock Exchange by a China-led group of investors.

http://money.cnn.com/2016/12/14/investing/china-buys-chicago-stock-exchange-security-clearance/

 

[my2cents]

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).

Why did the stock exchanges fail?? Only reason I can think of is that there is not much activity i.e buying and selling.

 

[Mrc]

Pse index crossed 50 000... 20% increase since news of chinese investment broke

 

[H!TchHiker]

What's your view on this bro

A short opinion considering the debate here.
1) First people saying that Pakistan is doing demutualization is bad as this is first country to do it or it is for sale. Stockholm Stock Exchange, Amsterdam Stock Exchange, Borsa Italiana, Australian Stock Exchange, Stock Exchange of Singapore, Toronto Stock Exchange, London Stock Exchange, Euronext, The Nasdaq Stock Market, Tokyo Stock Exchange, Bursa Malaysia, New York Stock Exchange and BOVESPA (Brazil)..All these stock exchanges are demutualized long before. Anyone can identify the name of countries whether they are sold out countries now ?..Check there market capitalization pre and post demutulization and then comment.

2) About the Share Price, no body was able to identify what was the book value and how market value was in term of book value. The SP was 3 times more than the book value that was calculated by a Professional Audit firm ,KPMG not by any tom dick and hairy.. The international average is 3.8 times ..Given the circumstances of Pakistan this is not bad as it is being portrayed.

3) Just to state few advantges it will improve better governance structures, access to economic capital, profit motivation for growth and development, removal of barrier to entry for new brokers (breaking the hegemony of few economic lords in Stock exchange), unlocking of value of membership cards, greater ability to attract listings, domestic and international recognition and ability to make international alliances. PSX can qualify to become a member of the World Federation of Exchanges, which has currently 68 members. This demutualization of the stock exchanges will actually convert the stock exchanges’ structure from nonprofit, mutually-owned organization to for-profit public limited company, owned by shareholders.This will break the hegemony of Broker Mafia

4) You will soon see the launch of derivatives, Index options and ETF(Exchange Traded funds) after demutualization, may be in last quarter of 2017.Those who know derivatives will surely call it as advancement and strength in equity market.

5) It was not only China, Turkish and Landon stock exchanges were also in a bid competition. Further if you compare these 3 markets it was better to go with China considering the capital and growth they have. Little hint count the number of investors in Chinese stock exchanges and then just imagine even if 1 % invest in PSX , thePSX index will be doubled in a year.

 

[PakForce]

This not good. Pakistanis should own this. Not China.