Na­tional Bank, Chi­nese of­fi­cials sign strate­gic co-op agree­ment

The Pak Banker - - FRONT PAGE -

A del­e­ga­tion com­pris­ing of 45 Chi­nese Of­fi­cials vis­ited Na­tional Bank of Pak­istan and signed a strate­gic co­op­er­a­tion agree­ment for pro­vi­sion of bank­ing fa­cil­i­ties by NBP to In­ter­na­tional Green Econ­omy As­so­ci­a­tion (IGEA) mem­bers.

The del­e­ga­tion was headed by Sha Zukhang, former deputy sec­re­tary-gen­eral of United Na­tions, pres­i­dent of Pak­istan Friend­ship As­so­ci­a­tion of China and Hon­orary Chair­man of the In­ter­na­tional Green Econ­omy As­so­ci­a­tion. The agree­ment was signed by Deng Ji­hai, Rep­re­sen­ta­tive of IGEA and GBO-Global and NBP Pres­i­dent, Arif Us­mani, said

NBP press re­lease on Mon­day.

In­ter­na­tional Green Econ­omy As­so­ci­a­tion is a non-profit so­cial or­ga­ni­za­tion op­er­at­ing out of Bei­jing, win­ning qual­i­fi­ca­tion of "4A eval­u­a­tion rank" for Chi­nese so­cial Or­ga­ni­za­tions.

IGEA is com­mit­ted to pro­mot­ing green de­vel­op­ment. It has more than 5,000 mem­bers and co­op­er­a­tive en­ter­prises in green man­u­fac­tur­ing, green ar­chi­tec­tures, eco­log­i­cal agri­cul­ture, en­ergy con­ser­va­tion and en­vi­ron­men­tal pro­tec­tion, new en­ergy, new ma­te­ri­als and other green in­dus­tries.

As an ad­vanced pro­fes­sional or­ga­ni­za­tion in green econ­omy. GBO-GLOBAL is the op­er­at­ing plat­form of IGEA, with fo­cus on or­ga­niz­ing Chi­nese en­ter­prises to work with Pak­istan.

NBP Pres­i­dent also hosted a din­ner for the del­e­gates where se­lected cor­po­rate cus­tomers of the bank were in­vited to hold B2B meet­ings with the mem­bers of the vis­it­ing del­e­ga­tion. Busi­ness com­mu­nity from both the coun­tries held ini­tial busi­ness di­a­logue to cre­ate joint ven­tures and enhance busi­ness re­la­tion­ships.

Ear­lier, Chi­nese in­vestors have ex­pressed keen in­ter­est in pour­ing at least $2 bil­lion into Pak­istan's stock mar­ket. "Small Chi­nese stock­bro­kers hav­ing $52 bil­lion in as­sets un­der man­age­ment have shown in­ter­est in in­vest­ing at least $2 bil­lion in shares at the Pak­istan Stock Ex­change (PSX)," an­nounced PSX Chair­man Su­laiman S Me­hdi at a press brief­ing on Fri­day, as the bourse was be­ing in­te­grated with re­gional and in­ter­na­tional stock mar­kets at a cost of $2.85 mil­lion.

The Chi­nese in­vestors ex­pressed the in­ter­est in a meet­ing held last week in China. Low share prices hov­er­ing at 6.5 mul­ti­ples at the PSX and av­er­age div­i­dend yield of 6.2% en­cour­aged them to con­sider in­ject­ing money into the PSX, he said.

Now, the gov­ern­ment of Pak­istan has to per­suade the Chi­nese gov­ern­ment to let its in­vestors in­vest in Pak­istan. Bei­jing laws re­quire Chi­nese in­vestors to take per­mis­sion from the reg­u­la­tors for in­vest­ment in other coun­tries.

Me­hdi said the PSX had signed a con­tract with the Shen­zhen Stock

Ex­change (SZSE) to ac­quire a new trad­ing and surveillan­ce sys­tem at a cost of $2.85 mil­lion.

The new sys­tem would con­nect the PSX with three Chi­nese in­ter­na­tional stock mar­kets in­clud­ing the SZSE, Shang­hai and Hong Kong ex­changes. The link­age will al­low cross-list­ing of com­pa­nies and at­tract for­eign in­vest­ment in each other's stocks.

Ear­lier, a Chi­nese con­sor­tium ac­quired a 40% stake in the PSX - the com­pany run­ning the stock trad­ing plat­form - at Rs28 per share in Jan­uary 2017.

A high PSX of­fi­cial told The Ex­press Tri­bune on the side­lines of a con­fer­ence that the bourse had writ­ten three let­ters to the Min­istry of Fi­nance, re­quest­ing it to ini­ti­ate talks with the Chi­nese gov­ern­ment for seek­ing ap­proval for Chi­nese in­vest­ment in the PSX.

"How­ever, no progress has been made so far," he said. "Now, we are plan­ning to take a del­e­ga­tion to meet Prime Min­ster Im­ran Khan in this re­gard."

The PSX chair­man re­vealed that the new trad­ing and surveillan­ce sys­tem would be fully de­ployed over the next 12 to 14 months. "How­ever, an in­terim surveillan­ce sys­tem will be in place by Fe­bru­ary 2020."

Ear­lier, the apex reg­u­la­tor - Se­cu­ri­ties and Ex­change Com­mis­sion of Pak­istan (SECP) - had given the PSX a dead­line to de­ploy a surveillan­ce sys­tem by December 2019.

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