Three Chi­nese ex­changes eye 40 per­cent stake in Pak­istani bourse

China Daily (Hong Kong) - - BUSINESS - By WU YIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

Three of China’s fi­nan­cial mar­ket op­er­a­tors in­tend to buy jointly a com­bined stake of up to 40 per­cent in the Pak­istan Stock Ex­change (PSX), a per­son with close knowl­edge of the po­ten­tial deal told China Daily.

The source, who is with the Shang­hai Stock Ex­change, said the SSE and two other bourses in China have sub­mit­ted a let­ter of in­tent to the PSX, the source said.

Reuters re­ported in early Oc­to­ber that the SSE had sub­mit­ted a let­ter of in­tent to buy the stake in the PSX, af­ter the lat­ter reached out to some bourses seek­ing strate­gic in­vestors in July.

The PSX has re­ceived let­ters of in­tent from some of the ex­changes, in­clud­ing one from an ex­change in the Mid­dle East, ac­cord­ing to a re­port in Nikkei Asian News.

The source with the SSE told China Daily the ac­qui­si­tion at­tempt is still un­der­go­ing pro­ce­dures and more de­tails will be dis­closed jointly by the three buy­ers at an “ap­pro­pri­ate time,” if the ac­qui­si­tion is suc­cess­ful.

The ac­qui­si­tion, if suc­cess­ful, would be the first by Chi­nese bourses of a for­eign stock ex­change.

China’s news and busi­ness so­cial me­dia plat­form jiemian.com re­ported on Wednes- day that the three op­er­a­tors, namely the SSE, the Shen­zhen Stock Ex­change, and the Shang­hai-based China Fi­nan­cial Fu­tures Ex­change, would like to buy stakes in the PSX, but the three op­er­a­tors de­clined to com­ment on the ac­qui­si­tion at the cur­rent stage.

A Shen­zhen Stock Ex­change source told China Daily that “there is noth­ing I can say about this deal at the cur­rent stage.”

The PSX was formed in Jan­uary by con­sol­i­dat­ing the La­hore, Karachi and Is­lam­abad stock ex­changes.

Chai Hua in Shen­zhen con­trib­uted to this story.

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