Cardiff Faces Strict Regulation in Chinese Forex Retail Market
China’s Retail Investment Market is growing substantially, and as investors from China start to become significant players in global current markets, foreign brokers are now looking to enter the countries online trading sector. However, Beijing government officials plan to severely regulate this market space, which could cause problems for foreign brokers in the coming months.
Cardiff is one of the brokerages trying to enter the market. Last month they appeared in Shanghai to pitch a new plan that would see upwards of a million people register as clients with their Forex Trading Platform. Immediately, lectures and trading skill seminars have been appearing all over major cities across China.
The hope for Cardiff and all other foreign brokers that want to enter the Chinese Retail Forex community is that the market will grow to rival the world’s, which is currently Japan. Considering that 1.4 Billion people in China now have the internet, it is not unlikely to make this goal become a reality. Currently, there’s only 8 Million Currency Trading Active open in Japan, with only 400,000 active monthly traders.
Foreign Retail Forex Brokers have been active in China since 1980. They paved the way for overseas banking in China and allowed them to learn the financial institution requirements needed to operate a powerhouse country. It appears that Foreign Retail Brokers are planning on doing this once again, except this time for the cryptocurrency and blockchain industries.
Regulatory Conditions Changing
Regulation in China is changing dramatically, though. Just last year along, security for outbound capital flows were held under scrutiny. China’s Administration of Foreign Exchange is creating national boundaries for global financial markets by using licenses. Unless a foreign broker has a license, they cannot begin to offer any form of their services in the communist regime.
The Administration is cleaning up the market space by strengthening its international regulation. As of 2018, there were more than six hundred illegal Forex exchanges that were shut down by the Chinese government. In the wake of those exchanges being shut down, official Chinese-run exchanges have moved into the market space. Those Forex exchanges include Nanhua and Citic.