China said it expects Bangladesh's relevant authorities would not 'politicise" the issue of China's planned strategic investment in the Dhaka bourse.
"…this is a completely commercial investment project," the spokesperson of the Chinese embassy in Dhaka said in a statement.
"(Chinese side) hopes that it will not be politicised and deliberately be used against China by discrediting China's image," said the statement in response to the written queries of the FE.
The reaction mirrors the apparent dismay over the commercial issue that is viewed by certain circles as a geo-political battle.
"As per the information obtained by Embassy of China, the Shenzhen Stock Exchange was invited by the Dhaka Stock Exchange (DSE) to participate in the bidding for strategic investor of DSE. According to the bidding results, the Chinese consortium's offer has been far better than other bidders," said the statement.
China expressed the hope that Bangladesh's relevant authorities will select the best partners on the principle of fairness, mutual benefit, and win-win cooperation and be accountable to investors.
After protracted talks, Bangladesh's stock-market regulator on Monday expressed its inability to approve the Chinese consortium's bidding offers for being strategic partner of the country's premier bourse and asked the bidder to submit a 'revised' proposal, fulfilling five conditions.
The Bangladesh Securities and Exchange Commission (BSEC) took the decision in an emergency meeting on the issue of accepting the proposal for being a strategic investor in the premier bourse. Chinese consortium that made the proposal comprises Shenzhen Stock Exchange and Shanghai Stock Exchange.
The consortium had earlier qualified in a bidding invited by the DSE to sell its 25 per cent stakes to a strategic partner.
On February 11, the DSE accepted the Chinese proposal unanimously and had decided to sign a deal with the Chinese consortium on the partnership after getting the greenlight from the securities regulator.
Shanghai and Shenzhen stock exchanges are among the top bourses in the world having market capital of $3.5 trillion and $2.2 trillion respectively.
Another consortium of India's National Stock Exchange, Frontier Bangladesh and Nasdaq stock market of the US took part in the bidding to become the DSE's partner.
A DSE official had earlier said the trilateral consortium offered Tk 15 per share to buy 25.1 per cent stake in the DSE.
The consortium also said it would provide technological help, but did not specify the fund it planned to commit.
Meanwhile, the Chinese consortium has proposed buying 25 per cent stakes in the DSE for Tk 9.9 billion at Tk 22 per share.
In its proposal, the consortium has also mentioned it will spend over Tk 3.0 billion to help upgrade technology at the DSE.
The market capital of the DSE is over Tk 4.28 trillion or $51.42 billion.
According to the 2013 demutualisation scheme, 25 per cent of the 1.8 billion shares of the DSE will be sold to strategic partners, 35 per cent to small investors while 40 per cent will be with the Trading Right Entitlement Certificate or TREC holders.
The DSE wishes to attract strategic partners to get advanced technological facilities, and consultancy services for management and business development.