China's three major stock and commodity exchanges, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the China Financial Futures Exchange, along with Pakistan-China Joint Investment Company (PCJIC), are planning to purchase a 40 percent stake in the Pakistan Stock Exchange (PSX), according to a report on the industry website dyhjw.com on Wednesday.
The four bidders have submitted letters of intent to acquire to the PSX, yet it remains unknown how the four with divide the stake, the report said.
The move might have been inspired by this year's "stunning performance" of Pakistani stocks, which are included in the MSCI Emerging Markets Index, the report said. The deal might also be aimed at expanding China's influence in countries involved with the "One Belt and One Road" initiative.
But Chinese companies are likely to face fierce competition in the bidding process, as representatives of stock exchanges from London, Turkey, Qatar and others in the Middle East have also shown interest, Japan economic journal Nikon Keizai Shimbun reported, citing the PSX's CEO. The result is expected to be announced at the beginning of 2017.
In November, Chinese companies sent representative teams to conduct research and feasibility studies on the deal, according to the report on -dyhjw.com.
The Karachi-based PSX is the only stock exchange in Pakistan.
