It is no secret that the world is changing. Europe and the United States are no longer the sole sources of innovation and technology as their dominance is constantly decreasing. Along with that, East Asia (China in particular) is becoming an increasingly dominant player in the financial sphere. There is a consistent increase in the flow of initiatives and capital from the east to west.
There are many reasons for this trend, the main one being the low growth rate of European economies and the European financial institutions’ lack of success in changing this trend. Moreover, Europe has also undergone a tremendous political shakeup with the threat of Grexit last year and the full-blown Brexit this time around.
Another key factor is the European regulatory framework which has become less and less friendly to brokers, fintech entrepreneurs and other financial enterprises. For instance, we all saw the recent circulars issued by CySEC (considered to be one of the most easy-going European regulators) which have increased the pressure on the forex and binary markets. Not to mention the fines issued by this body during last year.
Furthermore, MIFID II and MIFIR are already present and the burden is only expected to rise.
All these factors, along with the crowded competition in the European market, have convinced many brokers with EU activity to reconsider their path.
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On the flip side, East Asia (China in particular) has always been an attractive destination for Western and Russian brokerages and platform providers. Some of them, such as FXCM, Oanda and Leverate, have successfully entered the Chinese market and are witnessing this segment of their activity constantly and exponentially growing.
This trend also has various reasons. The growth rate in China outpaces its European counterparts. So do the size and the growth of the population, which along with the expansion of the middle class, create almost endless chances for doing business.
Having said that, this potential doesn’t just fall as a ripe fruit into the hands of the other person. China was and remains a black hole with respect to its regulatory framework, payments system, marketing nuances and many more.
For this specific purpose we have organized a comprehensive and extensive review of the main features of the Chinese trading and fintech industries in the FM quarterly report. In this special edition of the quarterly report, we have featured unique data and articles by some of the leading specialists from the trading and adjacent industries. This exclusive report aims to serve as a manual, answering most of the questions you’ve had on China but were always afraid to ask.
Want know more about the market in China? Get the brand new FM Intelligence Report: