Chinese consortium wins bid for 40% stake in Pakistan Stock Exchange

[danger007]

Its actually good, it will brings better management having Chinese stakes in it, less chances of stock market manipulation by Pakistani stock brokers as was done by non other than Mr. Shaukat Aziz.

I don't think so bro, it looks like someone from Pakistan politicians funding this.. you are talking about which intend to grow multifold in upcoming years..

 

[trident2010]

Hmm .. 40% shares for only $85mn. I am not an economist but I think pak stock exchange could have done better without giving up itself economically to other country.

I can only imagine how can China arm twist pak economically if wanted to with such a deep access to its stock exchange.

Good luck !

 

[The SC]

Something else like CPEC to bother India.. we can already see how much it bothers them..
You sell 40% of your business dirt cheap to an international, very experienced and world renown investor to take it on an international level with a potential worth 100s of billions of dollars in the future, while also offering 20% to the public to make them benefit as well.. is called vision or better yet calculated vision.. because the status quo won't get there as surely as with the JV with China..

 

[faithfulguy]

Hmm .. 40% shares for only $85mn. I am not an economist but I think pak stock exchange could have done better without giving up itself economically to other country.

I can only imagine how can China arm twist pak economically if wanted to with such a deep access to its stock exchange.

Good luck !

India can always retaliate by selling 40% of Bombay stock exchange to a US company.

 

[EXPERIMENT]

Just curious. So if there is future offering of 20% to public and shell companies or Chinese with local Pakistani "partners" buy say 11% for say 20 odd million dollars (pocket change for China) then China will own majority of PSX? Hmm. Interesting times for Pakistan me thinks. I think the Chinese psychological crutch got the better of them.

 

[Hellraiser007]

Congratulations China . Wish they get 60 percent !! .

I doubt the percentage figure, it may be more than 40 percent.

 

[DJ_Viper]

Something else like CPEC to bother India.. we can already see how much it bothers them..
You sell 40% of your business dirt cheap to an international, very experienced and world renown investor to take it on an international level with a potential worth 100s of billions of dollars in the future, while also offering 20% to the public to make them benefit as well.. is called vision or better yet calculated vision.. because the status quo won't get there as surely as with the JV with China..

Why would you want to sell a Gold mine that you can keep for yourself as it has been growing 100% every year. Continue to do that for the next 3 years, and grow it 200-300% more in size like Pakistan has been doing to their stock market. You can then make billions more. This was indeed a very hasty decision.

While I say this, I don't have all the documents from the deal. But here is something to remember, if the Chinese want to integrate this market with the Shanghai / Hong Kong markets (make securities from PSE available in those for international investors), then it makes all the sense in the world. As you'd go from 60,000 to a million points in the next 5 year and all that money obviously benefits Pakistan. We are talking about dozens of billions coming into Pakistan due to stock investments by the foreign investors. China obviously has a much bigger pull and influence in bringing foreign investors to PSE than Pakistan does, even with good growth potential.

 

[oprih]

Why are indians desperately want China and Pakistan to have bad relationship? Must be jealousy, no one wants to be a buddy with a third world superpower wannabe.

 

[I S I]

Why are indians desperately want China and Pakistan to have bad relationship? Must be jealousy, no one wants to be a buddy with a third world superpower wannabe.

√Rekt

 

[The SC]

Why would you want to sell a Gold mine that you can keep for yourself as it has been growing 100% every year. Continue to do that for the next 3 years, and grow it 200-300% more in size like Pakistan has been doing to their stock market. You can then make billions more. This was indeed a very hasty decision.

While I say this, I don't have all the documents from the deal. But here is something to remember, if the Chinese want to integrate this market with the Shanghai / Hong Kong markets (make securities from PSE available in those for international investors), then it makes all the sense in the world. As you'd go from 60,000 to a million points in the next 5 year and all that money obviously benefits Pakistan. We are talking about dozens of billions coming into Pakistan due to stock investments by the foreign investors. China obviously has a much bigger pull and influence in bringing foreign investors to PSE than Pakistan does, even with good growth potential.

1) What if a trusted friend can make it grow a 1000%? That, you have answered in the second paragraph..
2) That is what I mean..

 

[DJ_Viper]

Wtf!!! A 40% stake for 85mn USD. This is a joke right??? Right??

Daylight robbery!!!

There is no robberyy here. You can stop being overly dramatic. Whether I or you or anyone else thinks the Chinese got a deal, that's on thing. But what you can and should put your money on, is the fact that the every single stock sold is for a Pakistani company. So that money comes to Pakistan and that doesn't change.

Also, I've been studying China and Pakistan for years now. If I am correct in how I've seen the Chinese do things, they will link the PSE to their Shanghai and HongKong exchanges. Through those, the Pakistani stocks will be sold throughout the globe. That is the same as me buying Ali Baba or China Telecom's stock from the US by sitting on my laptop.

That would only bring dozens of millions of traders to the Pakistani market, who, right now, can't trade Pakistani stocks directly, and have to go through their brokers for more of a long term trading. This integration with the Chinese market will produce billions more for Pakistan. Remember, the Chinese have much more $$$$, global influence and power than the Pakistanis alone. So this will bring tremendous amounts of profits in the days to come.

1) What if a trusted friend can make it grow a 1000%? That, you have answered in the second paragraph..
2) That is what I mean..

Right, I addressed that part. But I am also a realistic guy. For something better in the future, I don't let go what I have today. In other words, a bird in hand, is better than a bird in a bush. But regardless, this decision should turn out good for Pakistan. My thing was, Pakistan should've asked for more money as everyone knows their market is well worth it and bound to go up a lot.

 

[neem456]

Am i missing something here ? 85 million dollar for 40 % stakes ?

India is spending whooping 500 million jus for a statue in the middle of arabian sea.

Humko bolte pakistani bhai toh hum khareed lete for 120 million dollars.

 

[The SC]

Right, I addressed that part. But I am also a realistic guy. For something better in the future, I don't let go what I have today. In other words, a bird in hand, is better than a bird in a bush. But regardless, this decision should turn out good for Pakistan. My thing was, Pakistan should've asked for more money as everyone knows their market is well worth it and bound to go up a lot.

You can be sure that experienced economists on both sides have thought the process through and came to the conclusion that it was a Win/Win profitable JV..
Pakistan Stock Exchange is still in the hands of Pakistan (majority shares).. Why ask for more money when the Risk is calculated to be low and a big profitability outcome is quite certain after sound and comprehensive market research?

 

[neem456]

Btw, i am not a expert, and i wanna know do countries usually sell stakes in their stock exchange to other countries that to upto 40% ? And also that cheap ? Or pakistan is the only one ?

Have india done anything of that sort ? God forbid, i hope not.

 

[v9s]

Btw, i am not a expert, and i wanna know do countries usually sell stakes in their stock exchange to other countries that to upto 40% ? And also that cheap ? Or pakistan is the only one ?

Have india done anything of that sort ? God forbid, i hope not.

Stock exchanges are sold all over the world. Currently the Chinese have won the bid for Chicago Stock Exchange. The LSE is also being sold, and NYSE is owned by ICE.

Uninformed idiots are making an issue out of nothing. PSX is a relatively small exchange, and volumes are low compared to other stock exchanges around the globe. The sale to the consortium is a good thing - it will lead to implementation of modern tech, more instruments being offered and will give Chinese traders access to the Pakistani stock market and vice versa.