China Financial Futures Exchange (CFFEX) leads Chinese consortium to further promote multi-item records in Pakistan’s capital market.

A new milestone has been set for capital market cooperation under the Belt and Road Initiative and the China-Pakistan Economic Corridor. On June 15, 2026, the Pakistan Stock Exchange (PSE), with the China Financial Futures Exchange (CFFEX) and other Chinese consortia as its largest shareholder, welcomed its first Chinese-funded enterprise to list on the PSE. This also broke the record for the most items in Pakistan’s capital market, marking a new stage in the cooperation of the China-Pakistan Economic Corridor, moving from industrial investment to a dual-engine model of “industry + capital”.

Service Long March Tyres Limited (SLM), which went public this time, is a joint venture between China’s Chaoyang Langma Tire and Pakistan’s Servis Group. Prior to the listing, the Chinese side held approximately 43% of the shares. SLM is Pakistan’s largest all-steel radial tire manufacturer, with a domestic market share exceeding 55%, and is also a core tire exporter in Pakistan, with products sold to overseas markets such as the United States and Brazil. This IPO set multiple records in the Pakistani capital market. The fundraising size of 7.77 billion rupees (approximately US$28 million) made it the largest private company IPO in Pakistan; during the book-building phase, it attracted subscriptions of 69.4 billion rupees (approximately US$250 million), an oversubscription of 16.7 times, and was fully subscribed in 5 seconds, setting records for the highest subscription amount and fastest subscription on the Pakistan Stock Exchange.

Since the China Financial Futures Exchange (CFFEX), in early 2017, led a consortium of Chinese investors, including the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), to strategically invest in the Brazilian Stock Exchange (SBE). For nearly a decade, the CFFEX has continuously promoted the optimization of corporate governance, the upgrading of its technology systems, the improvement of its financing mechanisms, and the advancement of its internationalization, striving to build the SBE into a high-quality capital market platform serving the real economies of China and Brazil and contributing to the Belt and Road Initiative. The successful listing of SLM is another landmark achievement of the SBE’s Chinese shareholders’ long-term dedication and collaborative efforts. It is also a successful example of leveraging the capital markets of Belt and Road countries to serve Chinese cross-border real economy industries, injecting new momentum into the all-weather strategic partnership between China and Brazil and contributing to the high-quality development of the Belt and Road Initiative.

You Hang, member of the Party Committee and Deputy General Manager of China Financial Futures Exchange (CFFEX) and Chinese Director of Pakistan Stock Exchange (PSE), led a delegation to attend the listing ceremony and delivered a speech. You Hang stated that the successful listing of SLM is a concentrated manifestation of Sino-Pakistani industrial cooperation, technology transfer, and capital empowerment. It is also an important achievement of the Chinese shareholders’ continued support for PSE in serving the real economy and cultivating high-quality listing resources, setting a clear benchmark for more Sino-Pakistani cooperative projects to list on PSE. Since acquiring shares, the Chinese consortium has continuously promoted PSE to enhance its financing functions and internationalization level, building an efficient capital market platform for Chinese enterprises to “enter and integrate into Pakistan.”

The funds raised in this IPO will primarily be used for the construction of a new radial tire factory for passenger vehicles. The total investment for the Items project is approximately 22.56 billion rupees, with production expected to commence in January 2028. Upon completion, the Items project will allow SLM to expand from truck and bus tires to passenger vehicle tires, further improving Pakistan’s tire industry chain, reducing import dependence, enhancing local manufacturing and export competitiveness, and creating more local jobs. The offering price of 19.95 rupees reached the upper limit of the price range, representing a 40% premium over the floor price, indicating global capital’s recognition of SLM’s fundamentals, technological strength, production capacity, and export prospects.

The above content is reproduced from CICC

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