China battles India for stake in Bangladesh’s biggest stock exchange
There have been complaints of favouritism towards India after China’s larger offer was rebuffed
India and China have launched rival bids for a large stake in Bangladesh’s stock exchange, officials said on Thursday, as the Asian powers jostle for strategic influence in the region.
Dhaka Stock Exchange (DSE) chief executive Majedur Rahman confirmed India’s National Stock Exchange had offered 15 taka ($0.18) per share during a tender process this month for a 25 per cent stake in the bourse’s 1.8 billion shares.
China’s Shanghai and Shenzen stock exchanges made a joint higher bid of 22 taka ($0.26) per share, or US$122 million, and “also offered technical support worth nearly US$37 million”, Rahman told AFP.
An exchange official said the Chinese bid was approved by the board but it was rebuffed by Bangladesh’s financial regulators, sparking allegations of political meddling.
“The BSEC [Bangladesh Securities and Exchange Commission] declined to give the order to go ahead,” the official said, speaking on condition of anonymity. “It also asked the DSE to further scrutinise the proposals.”