Photo taken on Nov. 18, 2019 shows a view of the expressway section of the Karakorum Highway (KKH) project phase two in Pakistan. The expressway section of the KKH project phase two was inaugurated in Havelian in northwestern Pakistan on Monday, marking another step forward to complete the early harvest project under the China-Pakistan Economic Corridor (CPEC). (Xinhua/Liu Tian)

Cooperation between the Shenzhen Stock Exchange (SZSE) and Pakistan Stock Exchange (PSX) represents a technological breakthrough between emerging markets, and it's also a pragmatic move to implement the construction of the Belt and Road Initiative (BRI), analysts said.

The SZSE and PSX signed an agreement on a trading and market surveillance system on Tuesday, domestic news site 21jingji.com reported. 

This is the first time Chinese securities technological system will be applied in a foreign stock market, according to the report.

Based on its proprietary trading and surveillance system and considering actual growth of capital market in Pakistan, the SZSE will help the local bourse upgrade its trading system and establish a market surveillance system, read the agreement.

The system will largely enhance the competitive competence and influence of the PSX in the region through promoting its operating capacity, efficiency and risk control level, the report said.

The SZSE has a technical team that has been devoted to independent research and development for nearly 30 years, which has enabled the exchange to accumulate professional knowledge and experience in areas including surveillance and financial cloud, Wu Hao, a Shenzhen-based industry analyst, told the Global Times on Tuesday.

The core technical indicators of the SZSE are world-class and have a 17-year global record of safe operations, domestic news site stcn.com reported.

The cooperation showed the two countries are striving to fulfill the principles of the BRI - to pursue a shared future via joint efforts, said Liu Qing, director of the department for Asia-Pacific security and cooperation at the China Institute of International Studies.

The effort is also a way to help implement the construction of the China-Pakistan Economic Corridor, analysts said.

Liu told the Global Times on Tuesday that with the growth of the Chinese securities industry, the SZSE is able to share its experience with its Pakistani partner, which will support capital flows in markets along the routes of the BRI.  

"But some problems may persist as there are many uncertainties in Pakistan's market," Liu noted.

The SZSE will comply with the requests of the China Securities Regulatory Commission to further promote interconnections and provide long-term, stable and sustainable financial innovation services for markets along the routes of the BRI, the stcn.com report said.