SECP Clears Path for Greater Chinese Investment in Pakistan Markets

Overview

• The SECP on June 24 approved carving real estate activities out of the Pakistan Stock Exchange and gave consent for the PSX to raise shareholdings in the National Clearing Company of Pakistan Limited and the Central Depository Company.
• A Chinese investor consortium, represented by CFFEX EVP Yu Hong, sent a letter thanking SECP Chairman Kabir Sidhu and said it intends to increase holdings in Pakistan’s market infrastructure.
• The consortium expressed interest in developing new products, including exploring cross-border exchange-traded funds, but concrete launches or capital commitments remain at an exploratory stage.
• SECP and the National Accountability Bureau agreed to formalise a memorandum of understanding for joint enforcement, and the SECP clarified that only licensed banks and SECP‑authorised institutions may take public deposits under Section 84 of the Companies Act 2017.
• The approvals are meant to reduce conflicts in exchange structure and improve foreign investor access to clearing and depository services, which could attract more institutional capital if MoU details and product approvals follow through.