Nairobi Securities Exchange Seeks To Tap Asian investors With China Roadshow
NSE chief executive officer Geoffrey Odundo has told China’s state Xinhua news agency that the bourse is preparing to hold a series of “roadshows” in China “so that we create awareness of the NSE”.
“We are therefore planning to conduct road shows in China in the coming months so that we create awareness of the NSE in China,” Odundo said.
Over the past decade, Chinese firms have begun to play a prominent role in Kenya’s economy. Odundo said that most Chinese firms operating in Kenya are either state-owned or privately held firms.
“By listing in the NSE, the Chinese can access long-term capital at cheaper rates,” he added. The CEO noted that China has a high savings ratio as compared to Kenya.
“There is therefore a huge pool of Chinese funds that is looking for high returns that the NSE currently offers,” he added.
The NSE is currently having discussions with Chinese investors who want to list their companies in African stock exchanges.
Odundo said that the Chinese have adopted a long-term view of Africa and therefore are seeking to grow their firms as the continent also grows.
Some of the advantages that Chinese firms will get by listing in Kenya are that they will gain more acceptance by local consumers.
The NSE has already signed a Memorandum of Understanding with the Shanghai Securities Exchange in order to enhance knowledge sharing among the two exchanges.
Under the agreement, Kenya will be assisted to develop products that appeal to Chinese capital markets investors.
Odundo noted that some NSE personnel will also visit the Shanghai bourse in order to understand how the Chinese exchange has expanded rapidly in the past decade.