China to Scrap Foreign Ownership Rules for Fintech Companies
- In a major turn of events, the online trading industry should perhaps be hailing... Donald Trump.

Merely a day after the start of Donald Trump’s visit to China, the central government of the country is taking steps to relax some rules governing financial services. The vice-minister of finance, Zhu Guangyao, is on the wires this EU morning. He states that foreign companies will be allowed to control up to 51 percent of local firms providing financial services.
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The details are still lacking, but the Chinese government is preparing to relax or eliminate ownership limits in several sectors. Those include commercial banking, securities and futures businesses, asset management, and insurance as confirmed by Guanyao.
Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term Industry Implications
The move by the Chinese government can be a leap forward for online trading and fintech in general. As foreign companies gain a more fair and open access to the local market, the growth opportunities (and competition) in the region is set to increase.
Historically the Chinese authorities have mandated foreign companies to share their know-how with local partners. While these requirements will remain in place, the most important limitation - that of a minority stake ownership - could make even more companies set their eyes on China.
There Might be Strings Attached
The opening of the local financial services industry to foreign companies is not likely to be free. While the Chinese government has been relatively lax when it comes to the regulatory rules governing the sector, the move could spell the end of this approach.
With a financial regulator in Hong Kong that has a solid reputation, Chinese authorities have a choice how to address oversight of what could be an unprecedented boom in fintech. As the market becomes more accessible to foreign companies, the Chinese authorities will still be applying capital controls and the bureaucratic burden on local operators is not likely to be removed any time soon.
Merely a day after the start of Donald Trump’s visit to China, the central government of the country is taking steps to relax some rules governing financial services. The vice-minister of finance, Zhu Guangyao, is on the wires this EU morning. He states that foreign companies will be allowed to control up to 51 percent of local firms providing financial services.
Time is running out to get your seat. Register today!
[gptAdvertisement]
The details are still lacking, but the Chinese government is preparing to relax or eliminate ownership limits in several sectors. Those include commercial banking, securities and futures businesses, asset management, and insurance as confirmed by Guanyao.
Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term Industry Implications
The move by the Chinese government can be a leap forward for online trading and fintech in general. As foreign companies gain a more fair and open access to the local market, the growth opportunities (and competition) in the region is set to increase.
Historically the Chinese authorities have mandated foreign companies to share their know-how with local partners. While these requirements will remain in place, the most important limitation - that of a minority stake ownership - could make even more companies set their eyes on China.
There Might be Strings Attached
The opening of the local financial services industry to foreign companies is not likely to be free. While the Chinese government has been relatively lax when it comes to the regulatory rules governing the sector, the move could spell the end of this approach.
With a financial regulator in Hong Kong that has a solid reputation, Chinese authorities have a choice how to address oversight of what could be an unprecedented boom in fintech. As the market becomes more accessible to foreign companies, the Chinese authorities will still be applying capital controls and the bureaucratic burden on local operators is not likely to be removed any time soon.