Huge growth awaits DSE: Muhith | The Daily Star
12:00 AM, May 15, 2018 / LAST MODIFIED: 12:54 AM, May 15, 2018

Huge growth awaits DSE: Muhith

Chinese bourses sign agreement to become its partner

The Dhaka Stock Exchange can look forward to astronomical growth in the coming days after Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) officially became its strategic partner yesterday, said Finance Minister AMA Muhith.

“Both the stock exchanges are much younger than the ones in Dhaka and Mumbai but they are growing way faster,” he said at the share purchase agreement signing ceremony held at the capital's Le Méridien hotel.

The two Chinese stock exchanges, which together bought 25 percent stakes of the DSE, were established in 1990.

As of October 31, 2017, SSE is the fourth largest stock exchange in the world and SZSE the eighth largest. Both the stock exchanges have market capitalisation of almost $9 trillion.

The Chinese consortium has experience of very fast growth in capital market development so the DSE will definitely benefit from the experience.

“Our capital market is old but not healthy. This partnership will bear good fruit for Bangladesh, but the DSE should match up to their speed,” he added.

It is a win-win situation for all, said Wang Juanjun, president and chief executive officer of SZSE.

“If the Bangladesh capital market grows fast, we will benefit. So, we want to make the stock exchange to global standards.”

Although comparatively young, both the stock exchanges have achieved global importance by virtue of its advanced technology and innovative products, he added.

The Chinese consortium will not only enhance the image of DSE but also ensure good governance and ethical practice, said M Khairul Hossain, chairman of BSEC.

They will also improve the institutional investors' base, attract good companies and foreign portfolio investment as well as upgrade the technology.

“They have such experience,” he added.

KAM Majedur Rahman, managing director of DSE, and Wang and Pan Xuexian, chair of the supervisory board of SSE, signed the agreement on behalf of their respective parties.

The consortium, which managed to fend off advances from another consortium led by the National Stock Exchange of India for the 25 percent stakes of the DSE, purchased 45 crore shares for Tk 21 each.

It will also provide technical support worth $37 million (about Tk 300 crore). In exchange, it sought for a seat at the DSE board and assured that it will not ask for any return on its investment for 10 years.  

Stay updated on the go with The Daily Star Android & iOS News App. Click here to download it for your device.

Grameenphone and Robi:
Type START <space> BR and send SMS it to 2222

Banglalink:
Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News

Top