The Shenzen Stock Exchange (SZSE) will launch a joint index in cooperation with the Dhaka Stock Exchange (DSE) by the end of this year to increase Chinese investment to the secondary market of Bangladesh.
Liu Fuzhong, one of the directors of the SZSE, told that they have taken the initiative to introduce a joint index, comprising well performing companies, in cooperation with the DSE, to attract more Chinese investments in Bangladesh’s capital market.
This information was revealed at the ‘The 3rd China-Bangladesh Capital Market Cooperation Seminar’ in Shenzen on November 7. The seminar, hosted by the Shenzen Stock Exchange, was held at the SZSE. V-Next, Asian Tiger Capital Partners, and Kingdom Technology are its co-organisers.
Mr Liu also said Bangladesh capital market has lots of potentials for Chinese investors. They have opportunities to further tap potentials of the DSE, and to deepen cooperation among the capital markets of China and Bangladesh.
An SZSE-led Chinese consortium, made up of Shenzhen and Shanghai stock exchanges, became the strategic partner of the DSE in May last year by purchasing the Dhaka bourse’s 25 percent stake.
Since then the SZSE has been working to develop local capital market. Major changes have been made in technological upgradation, development of SME market and cross-border capital matching.
The first work was to build a capital market matching platform. The V-Next platform of the SZSE brings together a large number of high-quality Chinese enterprises.
The DSE also introduced V-Next platform in cooperation with the SZSE in this October. It is an online space that matches investors with investment-seekers and their SME platform.
There are more than 16,000 institutional investors from 39 countries registered on the V-Next. More than 1,100 companies have already raised about $5 billion using the platform. The DSE SME board allows small and medium-sized entrepreneurs to raise funds.
The DSE President Abul Hasem said that Bangladesh is giving substantial efforts to maintain macro-economic stability, strengthen revenue mobilisation, tackle energy and infrastructure deficits, support an expanding financial sector and external trade reforms and improve existing labour skills.
The DSE president also informed that the bourse is keen to set up new platforms for expansion of the local capital market to create opportunities for investors to diversify their investment.
Ifty Islam, chairman of Asian Tiger Capital Partners, focused on Bangladesh Economy and Fintech overview to the Chinese investors.
Some 80-member delegation from Bangladesh capital market, including representatives from the DBA, merchant bankers, IT companies and mutual funds, are taking part in the programme in Shenzen.
By the end of 2018, the SZSE had listed 2,134 listed companies, with a total market capitalisation of $2.4 trillion.
The total capital raised in the equities market in 2018 was $57 billion. There are 4,909 listed bonds, including asset-back securities products, and 517 listed funds.