Chinese Consortium pledges to work for capital market dev | 2018-09-05 |

Chinese Consortium pledges to work for capital market dev

DSE hands over 25pc shares

Staff Correspondent

5 September, 2018 12:00 AM printer

Chinese Consortium, the new strategic partner of Dhaka Stock Exchange (DSE), on Tuesday expressed its commitment to work for overall development of the country’s capital market.

The consortium, comprising Shenzhen Stock Exchange and Shanghai Stock Exchange, also promised to put focus on technical and infrastructure development as well as automation and capacity building of DSE and the capital market.

Representative of the consortium made the pledges at a joint press briefing of Chinese consortium and Dhaka Stock Exchange at a city hotel on Tuesday.

Xie Wenhai, Deputy Director General, IT management committee of Shenzen Stock Exchange and its international department director Liu Fuzhong, DSE Chairman Abul Hashem and Managing Director KAM Majedur Rahman were present at the news briefing.

Earlier in the morning, DSE board handed over the 25 percent of its shares to the consortium as its new strategic partner. And on Monday, Chinese consortium transferred the price of 25 percent shares worth about Tk 947 crore.

DSE Managing Director  said that the bourse received Tk 962 crore under the share purchase agreement with the Chinese consortium against DSE’s 25 percent shares, of them Tk 15 crore has been deposited to government account as stamp duty.

“The money will be handed over to the broker members without any condition. They can use the money anywhere. They can do any business with the money, but we hope they will invest the money in the capital market”, he said.

With joining world’s two major stock markets as DSE’s strategic partner, the country‘s premier bourse has also turned to a market having international standards, said DSE chairman Abul Hashem.

Xie Wenhai, Deputy Director General, IT management committee of Shenzen Stock Exchange, who was also nominated as a new board member of DSE, said that building a cross-border capital market is their prime target.

Replying to a query, he said that it is just a beginning and the Chinese portfolio investors feel enthusiasm about this new emerging market.

Finding a scope of sharing financial resources, Liu Fuzhong said that they have huge plan on technical cooperation, improving infrastructure, e-filing and independent capacity building.

Following the demutualization act, country’s premier bourse sold its 450,944,125 ordinary shares at Tk 21 each to the consortium in exchange for over Tk 946.9 crore.

After getting final approval from Bangladesh Securities and Exchange Commission (BSEC) on May 3, DSE signed an agreement on May 14 with the Chinese consortium as a strategic partner.