Chinese consortium wins bid for 40% stake in Pakistan Stock Exchange

[SBD-3]

 

[Incog_nito]

I think they will soon buy it 100% and moreover, I am sure Chinese will be in talks to buy more Govt. owned organizations.

 

[Clutch]

I think they will soon buy it 100% and moreover, I am sure Chinese will be in talks to buy more Govt. owned organizations.

I hope they buy PIA and break it apart. What a pathetic airline!

 

[Incog_nito]

I hope they buy PIA and break it apart. What a pathetic airline!

Not break it apart rather improve it and hire more people as the airline has potential to flourish globally!

But in my opinion Chinese and other firms should be given opportunity to improve our companies overall business and management.

 

[HAIDER]

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

I am totally against this. China do business and invest in market but this giant step, where you cut your hands and gave to someone else. And later Pakistan follow foreign made economic policy. Because Pak ow billions of dollar unpaid foreign debt. ......................good luck

 

[Providence]

I LOLed at some of the reasons which was dished out by the supporters of this move. Feel pretty bad for their IQ.

The importance of owning the stock index can never be exaggerated. Its the platform which enables public firms to raise capital, lays down proper disclosure regulations and above all prevents any gaming of the system & control fraud on a macro scale.

Most guys cant even fathom how crucial its role is in daily functioning of the economy !

 

[HAIDER]

I LOLed at some of the reasons which was dished out by the supporters of this move. Feel pretty bad for their IQ.

The importance of owning the stock index can never be exaggerated. Its the platform which enables public firms to raise capital, lays down proper disclosure regulations and above all prevents any gaming of the system & control fraud on a macro scale.

Most guys cant even fathom how crucial its role is in daily functioning of the economy !

Chinese companies come and disappear like dust in the wind, no question asked.

 

[mr.robot]

I am totally against this. China do business and invest in market but this giant step, where you cut your hands and gave to someone else. And later Pakistan follow foreign made economic policy. Because Pak ow billions of dollar unpaid foreign debt. ......................good luck

This is harsh and bitter but China's is a modern day and refined form of East India Compnay for Pakistan. We will realize it down the road.

 

[xyxmt]

Yup
View attachment 363010

funny this picture represents what you said, he is hiding his most valuable asset in sand LOL

 

[Mo12]

very bad, pak is losing its sovereignty

its more worrying that some pakistanis are happy with this.

Just because China supports you against your own enemy, doesnt mean you should sell your sovereignty to them!

btw who were the other parties that made a bid for the stock exchange?

There is no robberyy here. You can stop being overly dramatic. Whether I or you or anyone else thinks the Chinese got a deal, that's on thing. But what you can and should put your money on, is the fact that the every single stock sold is for a Pakistani company. So that money comes to Pakistan and that doesn't change.

Also, I've been studying China and Pakistan for years now. If I am correct in how I've seen the Chinese do things, they will link the PSE to their Shanghai and HongKong exchanges. Through those, the Pakistani stocks will be sold throughout the globe. That is the same as me buying Ali Baba or China Telecom's stock from the US by sitting on my laptop.

That would only bring dozens of millions of traders to the Pakistani market, who, right now, can't trade Pakistani stocks directly, and have to go through their brokers for more of a long term trading. This integration with the Chinese market will produce billions more for Pakistan. Remember, the Chinese have much more $$$$, global influence and power than the Pakistanis alone. So this will bring tremendous amounts of profits in the days to come.



Right, I addressed that part. But I am also a realistic guy. For something better in the future, I don't let go what I have today. In other words, a bird in hand, is better than a bird in a bush. But regardless, this decision should turn out good for Pakistan. My thing was, Pakistan should've asked for more money as everyone knows their market is well worth it and bound to go up a lot.

How would Pakistan make money, if Pakistan assets are sold in the Shangai stock exchange for example?

Commission will seem very less to me, unless its bought from the Pakistan stock exchange

 

[DJ_Viper]

very bad, pak is losing its sovereignty

its more worrying that some pakistanis are happy with this.

Just because China supports you against your own enemy, doesnt mean you should sell your sovereignty to them!

btw who were the other parties that made a bid for the stock exchange?

How would Pakistan make money, if Pakistan assets are sold in the Shangai stock exchange for example?

Commission will seem very less to me, unless its bought from the Pakistan stock exchange

So you sold your sovereignty to us for a few million IT and other jobs? If you want me to answer your real question about how the Pakistani stock system would work, remove all childish statements from your post and ask a mature question. Otherwise, I consider you our slave (like the logic you provided for the Pakistanis) and slaves don't ask questions.

I hope you'd see how bad my statement above sounds. So, lets be mature and write mature statements, so someone can actually have a smarter debate with you. I know you are smarter than this post of yours.

 

[Mo12]

So you sold your sovereignty to us for a few million IT and other jobs? If you want me to answer your real question about how the Pakistani stock system would work, remove all childish statements from your post and ask a mature question. Otherwise, I consider you our slave (like the logic you provided for the Pakistanis) and slaves don't ask questions.

I hope you'd see how bad my statement above sounds. So, lets be mature and write mature statements, so someone can actually have a smarter debate with you. I know you are smarter than this post of yours.

Just realised i remember your name, and all your troll comments about India previously.

Its best I dont take your 1 sided view, dont try to act so smart like your have vital information in this, as you are just a troll.

Good riddance!

Now lets stick on topic, ill do this by ignoring you.

 

[DJ_Viper]

Just realised i remember your name, and all your troll comments about India previously.

Its best I dont take your 1 sided view, dont try to act so smart like your have vital information in this, as you are just a troll.

Good riddance!

Now lets stick on topic, ill do this by ignoring you.

Sorry your feelings got hurt. If you want me to participate in a conversation, act like an adult. 12 year old posts high on "patriot juice" and propaganda don't really impress me or get an answer from me.

Also, I don't recall us ever being friends before, nor do I come on here to make friends. So not sure how you had "remembered" my name. I don't have any beef with India, Pakistan or the Mars. I do pass comments when I see utter stupidity from either side. Just because I don't side with you, doesn't mean I hate you. Thanks

 

[Bouncer]

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

In short: a very good thing. Shanghai is a HUGE stock exchange. It will couple 200m shareholders in Shanghai with 0.5m in PSX. This move will also bring technological know-how, marketing and transparency to PSX which will directly increase Pakistani participation in PSX. Currently the impression is that PSX (KSE mainly) is run by crooks who look after their own interests at the expense of small investor.

Leadership by a known entity will bring confidence in PSX operations. Increased liquidity will take it to new heights IA.

This is a really bad thing. It was done in a rush. If I was there, I would wait for the stock market to continue to go up till after 2018 when the SPEC completes, becomes operational and gives out a revenue. That would mean, a few more new cities along the route would start to grow to become future cities (focused on trade route obviously). And the GDP of Pakistan is projected to grow starting next year, so by 2020, it would be in a different league. In 2020, I would evaluate the stock market for a potential sale. At that time, based on the previous performance of the past three years, I think that the market should be around or over 100,000 points (if not double the size).

At that time, I could go, and ask for 2-3 times the evaluation. So if at that time its evaluation comes at $ 100 million (just an example), you could ask for $ 300 million and may be get over $ 250 million.

Now if you increase numbers, $ 3 billion evaluation means you could ask for $ 9 billion and get around $ 8 or so. Not sure why they did it now. May be they wanted to modernize it and bring in a more mature system for growth? That would be the only thing that would make sense.

In other words, when I know my business is growing and it can get three times the money, why sell it now? I'd wait and make 3 times more in the next three years...

KSE returned 41% last year. How can you be so sure that the perfect combination of oil prices, investor confidence, low returns in North American and EU markets will continue for the next three years? KSE's strong performance was a result of all of above factors, and then some.

No one can predict the market. Otherwise we'd all be very rich. IMO, this was the perfect time and perfect price (PKR2 above the floor price) for this sale.

 

[DJ_Viper]

KSE returned 41% last year. How can you be so sure that the perfect combination of oil prices, investor confidence, low returns in North American and EU markets will continue for the next three years? KSE's strong performance was a result of all of above factors, and then some.

No one can predict the market. Otherwise we'd all be very rich. IMO, this was the perfect time and perfect price (PKR2 above the floor price) for this sale.

The difference between a newbie to the market and someone who has a little experience is that the newcomers think that "no one can predict the market". The reality is, the market is designed on most complex algorithms and sentiment based calculations run through super computing models. Once you understand the process, the market is very predictable.

The only thing that's unpredictable is what we call a "Flash Crash" (google it or youtube it, you'll see what I mean). Everything else, is very predictable in terms of market direction. History always repeats itself. For example, our DOW would hit and cross the 20,000 point in the next few days. That alone, would draw more investments into the market to push it higher.

The people that can and have predicted the market are very rich and become richer every day, such as Mr. Buffet, Carl Icahn, John Soros, and millions of other people. Thanks