India is far ahead of both India, Pakistan and Bangladesh in terms of stock market size. The size of India’s stock market is $ 5.18 lakh crore. At the same time, the valuation of Pakistan market is $ 66 billion. The size of Bangladesh’s stock market is even smaller. According to this, the stock markets of both neighboring countries are also different from each other. But there is one thing that is common in them and that is China’s share. Yes, China has an important stake in the stock exchanges of both Pakistan and Bangladesh.
Let’s talk about Pakistan first. In March 2017, a group of entities from China and Pakistan bought a 40 percent stake in the Pakistan Stock Exchange. This is also revealed on the Shanghai Stock Exchange website. A statement on the exchange website stated, “In March 2017, Shanghai Stock Exchange (SSE), China Financial Futures Exchange (CFFEX), Shenzhen Stock Exchange (SZSE), Pak China Investment Company Limited and Habib Bank Limited created a concert and 40% stake in Pakistan Exchange.
3 directors of China in the exchange board
The 2024 annual report of the Pakistan Stock Exchange has mentioned the Shanghai Stock Exchange, the China Financial Futures Exchange and the Shenzhen Stock Exchange as the “foreign shareholder” of the exchange. The board of Pakistan Stock Exchange has 10 directors and 3- You Hang, Fu Hao and Gu Junmei are Chinese. Hang, China Financial Futures are representatives of the CFFEX. The other two are senior officers of the Shanghai Stock Exchange.
China’s share in Bangladesh market
1 year after winning a stake in the Pakistan Stock Exchange, in May 2018, a Chinese consortium, created by the Shanghai Stock Exchange and the Shenzhen Stock Exchange, won 25 percent stake in the Dhaka Stock Exchange. A statement on the Shanghai Stock Exchange website said, “In May 2018, the Bangladesh Securities and Exchange Commission officially approved the Chinese Consistency scheme formed by Shanghai Stock Exchange and Shenzhen Stock Exchange.”
However, China does not have a major presence in the board of Dhaka Stock Exchange. According to the website of Dhaka Stock Exchange, only one of the 13 board members is from China. Wang High, Dhaka Stock Exchange of Shenzhen Stock Exchange is on the board.