Staff Correspondent, bdnews24.com
Published: 2018-05-14 23:41:55 BdST
DSE Managing Director KAM Majedur Rahman, Shenzhen Stock Exchange President and CEO Wang Jianjun and Shanghai Stock Exchange Supervisory Board Chairman Pan Xuexian signed the agreement at a hotel in Dhaka on Monday.
Only the formalities on the DSE’s strategic partnership remained after the Securities and Exchange Commission cleared the Chinese consortium’s offer to buy 25 percent of the premier bourse of Bangladesh on May 3.
Finance Minister AMA Muhith, SEC Chairman M Khairul Hossain and officials of the three bourses were present at the signing ceremony.
“Today is an important day for Bangladesh’s capital market and economy,” said Muhith.
He hoped the DSE would play a more proactive role in the economy from now on after getting the Chinese bourses as strategic partners.
The Chinese consortium is buying 450,944,125 of DSE shares each at Tk 21.
Shanghai and Shenzhen stock exchanges are among the top bourses in the world boasting $3.5 trillion and $2.2 trillion market capital, respectively.
The market capital of the DSE is over Tk 4.28 trillion or $51.42 billion.
The DSE wanted strategic partners in order to get advanced technological facilities, and consultancy services for management and business development.
DSE Chairman Abul Hashem said they launched the search of strategic partners in 2015 and communicated with 39 international companies.
“We prioritised longterm relationship and sustainable development of the capital market to pick our strategic partners,” he added.
Another consortium of India’s National Stock Exchange, Frontier Bangladesh and Nasdaq of the US bid to become the DSE’s partners. It offered Tk 15 per share of the DSE, according to officials.
The deal follows a successful 2016 bid from a Chinese consortium, which included the Shenzhen and Shanghai stock exchanges, and purchased 40 percent of the Pakistan Stock Exchange.
The Chinese offer is part of the broader contest between Beijing and New Delhi in the region’s smaller countries, from Nepal to Myanmar.
China had already invested heavily in the region’s hard infrastructure.
But as it seeks closer economic ties as part of its Belt and Road Initiative—a vast network of ports, railways, roads and infrastructure—its state-owned bourses have also been investing on foreign exchanges.