The Shanghai Stock Exchange is seeking to buy up to a 40%stake in the Pakistan Stock Exchange, TheNikkei Asian Review reported Oct. 2, citing Ayyaz Afzal, director at a unitof the Pakistani bourse.

The Chinese bourse has submitted the letter of intent toacquire a stake in the PSX, which was established in January as a result of the merger of thestock exchanges of Lahore, Karachi and Islamabad.

In addition to the Shanghai bourse, the PSX received aletter of intent from a stock exchange in the Middle East, the official said,adding that the bourse could receive additional letters of intent by December.

The Nikkei report came months after PSXChairman Muneer Kamal had said in March that the bourse to bring in one or moreinternational stock exchanges as strategic investors in the next six months.Later in May, a media report said the bourse received interest from the stock exchanges of Qatar andTurkey and other investors for a potential stake.

Afzal suggested that an announcement about the strategicinvestor in PSX could be made before March 2017.

A Shanghai Stock Exchange source declined to comment but didnot deny submission of a letter of intent, the publication reported.