Chinese Investors to increase Holdings in Pakistan’s CDC, NCCPL after Regulatory Approval

ISLAMABAD – Pakistan’s capital markets are set for new phase of foreign investment as Chinese strategic investors plan to expand their stakes in key market infrastructure institutions. After receiving regulatory approval from the SECP, Chinese consortium will increase its holdings in the Central Depository Company and the National Clearing Company of Pakistan. The move highlights growing financial cooperation between Pakistan and China and comes alongside discussions on broader market development and cross-border investment initiatives. The development came during a meeting between a high-level Chinese delegation and SECP Chairman Dr. Kabir Ahmed Sidhu, where both sides discussed broader cooperation in capital market development and financial sector integration. SECP already issued required approvals, enabling the consortium to proceed with its expanded investment plan. The move is being seen as a step toward strengthening Pakistan’s market infrastructure and attracting long-term foreign capital. During the meeting, discussions also focused on enhancing Pakistan’s capital market framework, introducing new financial instruments, and improving overall market efficiency. Chinese delegation appreciated the regulator for clearing long-pending approvals, stating that the decisions would help facilitate smoother investment flows. The delegation welcomed decision to spin off the Pakistan Stock Exchange’s property management function into a separate entity. The new company will operate under a Real Estate Investment Trust (REIT) model, allowing PSX to focus on its core market operations, product innovation, and strategic expansion. Chinese delegation was led by Yu Hong, Chief Representative of the China Financial Futures Exchange, and included Senior Vice President Lu Fengsen and Director Zhang Xiaofeng. Yu Hong expressed confidence in Pakistan’s capital market outlook, stating that Chinese investors were keen to play a more active role in its development. Both sides also di