Asian political economy: China beats India to slice of Dhaka Stock Exchange

Didn’t know this was happening. Apparently Dhaka Stock Exchange is modernising and demutualising. It had set aside 25% ownership for a foreign player and both India and China were vying for the pie.

Finally, Chinese authorities managed their hands over it:

Regional powerhouses India and China have locked horns over 25% ownership of Bangladesh’s largest stock exchange. The indications are that China has won what local observers are calling “an unwanted battle” for Bangladesh.

Those commentators see India and China as protagonists engaged in a tussle for regional domination. They say Bangladesh has been backed into a corner and told to choose between what has long been its most important neighbor (India) and its largest trading partner (China).

The Dhaka Stock Exchange (DSE) — South Asia’s third-largest bourse — put up a 25% stake for tender as part of its demutualization, with outside ownership being invited to help improve transparency and accountability.

The DSE always intended to opt for the highest bidder — in this case a Chinese consortium led by the Shanghai Stock Exchange (SSE). However, the  Bangladesh Securities and Exchange Commission (BSEC) apparently wished the bourse to accept a lower bid from a consortium led by India’s National Stock Exchange (NSE).

On Monday (February 19), the DSE stood firm: its board announced it would be sticking with the Chinese consortium. Dr Abul Hashem, Chairman of the DSE, told Asia Times that the board had “finalized and approved minutes of the previous board meeting, which unanimously voted for the Chinese consortium.”

One would imagine NSE to have higher capabilities but these things alone don’t matter in these high stakes game.

One Response to “Asian political economy: China beats India to slice of Dhaka Stock Exchange”

  1. Madhu Says:

    High stakes game? So what precisely are these stakes ? And how does a private stock exchange transaction which is not even discussed with SEBI be seen as strategically important for India? Looks like Asia Times is hyping it up for the Chinese investment. Probably playing for it’s Chinese subscribers and patrons

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