Philippine Stock Exchange Inc. is looking to bring on the Shenzhen Stock Exchange as a new investor as it seeks to sell new shares to partly fund its planned acquisition of Philippine Dealing System Holdings Corp., The Nikkei reported Oct. 16, citing Ramon Monzon, president and CEO of the Philippine bourse.
The Philippine bourse is in "very preliminary" talks with the Shenzhen exchange for a potential investment, Monzon said. The executive's comments came as the PSE plans to sell new shares to raise capital, expand its investor base and fix its ownership structure, the publication reported.
Currently, brokers own about 28% of the Philippine bourse, a violation of the country's rules that limit a group's stake in a stock exchange to 20% and a single entity's to 5%.
Monzon further said the potential investment by the Shenzhen Stock Exchange could act as a bridge to connect the bourse to Chinese investors. Monzon added that he wants to eventually see a Shenzhen-Manila stock connect that would allow Chinese investors to invest in the Philippine market.