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China group plans support to make DSE a top bourse

Mohiuddin Alamgir back from Shenzhen, China | Published: 02:57, Sep 26,2018

 
 

The Chinese consortium, which became strategic partner of the Dhaka Stock Exchange early this month, has said the consortium would help DSE enhance its capability with the aim of making the Bangladesh’s premier bourse a leading market in Asia.
A top official of the Shenzhen Stock Exchange, a member of the Chinese consortium, also said that there should be no concern about the consortium as they were not trying to sell anything to Bangladesh.
‘We understand that there is concern there that China consortium in Bangladesh will try to sell products. But this is not the goal of collaboration between the consortium and DSE,’ Shenzhen Stock Exchange director (international department) Liu Fuzhong said.
‘It is to be clear that China consortium is not there to sell things,’ Liu said at a meeting with a Bangladeshi media delegation to China on September 20.
‘The goal of the collaboration is to see what Bangladeshi market needs and the China consortium can offer and deliver,’ he said at the office of the Shenzhen Stock Exchange based in the city of Shenzhen, China.
The Chinese consortium of Shenzhen and Shanghai stock exchanges on September 4 joined DSE as its strategic shareholder through purchasing 25 per cent shares of the Bangladesh’s premier bourse at Tk 947 crore.
The consortium nominated Xie Wenhai, deputy director general of the IT management committee of the Shenzhen Stock Exchange, as a member to the DSE board.
The Chinese consortium offered technical assistance worth over $37 million to DSE and the Bangladesh Securities and Exchange Commission asked the bourse to evaluate technical and financial offers of the group for the interest of the country’s capital market.
‘I am sure that DSE will become a leading stock exchange in Asia and Bangladesh will be a leading economy in the region in terms of GDP growth as well as quality of the growth by 2041,’ Liu said.
The consortium is not looking for immediate attainment of goals as the group is planning to be in Bangladesh on a long-term basis, he said.
‘We are trying to understand very basic things. We are focusing on basic capacity building in Bangladesh and sharing experience in the beginning. We are still trying to understand working mechanism in Bangladesh,’ he said.
Given the two countries have similar development pattern, some of Chinese experiences might be shared, he said, citing examples of developing dynamic SME and private sectors and giving people incentives to develop new businesses.
‘But we fully respect opinion of all others board members of DSE, improvement plan of DSE. We will lend our all-out support to the development plan of DSE,’ Liu said.
The consortium believes that capacity building of DSE is crucial alongside improving of internal management, efficiency and effectiveness of working mechanism, he said.
‘To be frank, marketing infrastructure in the Bangladesh market needs some
improvement.’
‘We believe that China has the capacity to provide help where it is necessary,’ he added.
Regarding allegations of market manipulation at DSE, Liu said that market fluctuations and suspicion of misbehaviour of market were present everywhere in the globe.
‘No market is free from market manipulation. People from China, the UK and the USA as well as elsewhere complain about market abuse.’
He said that the Shenzhen Stock Exchange in the beginning
experienced rampant market abuses.
‘Then we improved regulations and used technology to face it. Now we are using big data and others to detect market misbehaviour.’
Liu said, ‘Even with the technological improvement and our means, it is still impossible to detect everything. It’s a long-time struggle and we
have to work on it day in day out.’
Bangladesh regulatory authorities and DSE are working hard on the market integrity, he added. 

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