China buys 40% in Pak Stock Exchange

[Mo12]

We have to congratulate China for getting such a good deal, there were more than 1 bidder and China won the process.

Immediately they are seeking the beenfits out of this.

 

[foxtrot1]

The type of knowledge you are exhibiting about SE even if you invest after 10 years you will loose all..

I would rather invest in BSE or Shanghai buy few shares of the companies in fashion market , which is low right now and gonna bounce back this year. And get some costly shares who are still on rise and immediately sell them after an hour.

I am not good at economy related topics so can't argue much but it is understood that Shanghai Stock Exchange has the world's fourth largest market cap so according to a layman's expectations, I feel there would attract a greater private Chinese investment into Pakistan.

but the companies whose share they have bought requires more than billion dollar investment to keep the profit in making.

 

[Great Sachin]

Chinese occupying Pakistan without any war but using power of money....but I am surprised Pakistan is happy with this situation.

 

[ZenBird]

I feel there would attract a greater private Chinese investment into Pakistan.

How? There might be greater Chinese investment but I don't see how the sale is linked to it.

 

[Manidabest]

we are happy for you

very good

 

[Spring Onion]

Rs28(PNR) per share is the highest bid = $0.26 per share? You must be kidding me .. That's too low

I don't know how it works but there are a total of 576 companies listed on Pakistan Stock Exchange (PSX). The aggregate market cap of which was said to be more than 8 trillion rupees last year.
Before the sale of this 40% share (please keep in mind the PSX was formed in January last year (Jan 2016) by consolidating the three stock exchanges of the country namely Lahore, Karachi and Islamabad), the only one survived was Karachi Stock Exchange.

So may be it depends on the total assets of KSE by the end of 2016. By the end of 2015 the the total assets of the Karachi Stock Exchange were about 14.1 billion Pakistani rupees ($134 million).

( An economist or a student of economy or a businessman can explain it better here on forum).

 

[Hareeb]

question is why are you selling your 40% stock to others..are you bankrupt or you want somebody else to control you.

It is expected this will increase chinese investment in Pak companies those shares are sold out.

 

[Skyliner]

I am not good at economy related topics so can't argue much but it is understood that Shanghai Stock Exchange has the world's fourth largest market cap so according to a layman's expectations, I feel there would attract a greater private Chinese investment into Pakistan.

That could be a plus. But we could have waited more before making this decision as international companies are just starting to invest , everyone have confidence in SE, as it is continously moving up with a great pace. But still experts can explain it better.

 

[Spring Onion]

Chinese occupying Pakistan without any war but using power of money....but I am surprised Pakistan is happy with this situation.

We also allowed one from Middle East to take part in this bidding. So it was not about China only.

 

[foxtrot1]

By the end of 2015 the the total assets of the Karachi Stock Exchange were about 14.1 billion Pakistani rupees ($134 million).

and $0.26 is average cost per share of 500+ companies. This means situation is really bad.

 

[TooRave]

It is expected this will increase chinese investment in Pak companies those shares are sold out.

I can see that happening & shares of the most big companies are bought at very huge extent...Lives of Pakistanis & their govt will be disciplined by those Chinese corporates sooner or later.

 

[Great Sachin]

We also allowed one from Middle East to take part in this bidding. So it was not about China only.

dont you think it was meant to sell to China. other party was used as dummy.

looks like it is also part of CPEC deal with China.

 

[H!TchHiker]

I would rather invest in BSE or Shanghai buy few shares of the companies in fashion market , which is low right now and gonna bounce back this year. And get some costly shares who are still on rise and immediately sell them after an hour.

You are not invited .....

 

[Hassan Guy]

I am completely unaware if this is a good or bad thing.

 

[Spring Onion]

dont you think it was meant to sell to China. other party was used as dummy.

looks like it is also part of CPEC deal with China.

The other parties did not bid higher. It was an open bidding not some secret bidding.

As far as CPEC well yes I also feel it may be in conformity with one belt one road phenomenon.