With such a large audience and potential client base, a great many FX companies consider the Far East a very important strategic location in which to establish operations.
The latest of such companies to go east is FXPRIMUS, which today announced the opening of a representative office in Shanghai, China.
Whilst Japan is home to the largest retail FX market in the world, it is highly competitive and has a vast number of loyal customers which choose domestic companies with which to develop relationships, China by contrast is largely unpopulated with FX companies, with Chinese retail FX traders preferring to opt for overseas firms, if they are able to transfer their funds to trading accounts overseas.
A very popular means of companies with their origins outside of China to enter the market is to establish independent representative offices, with Chinese ownership and staff, which develop business from within China on behalf of the foreign FX company.
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China has a population of over 1.3 billion people and is the world’s second-largest economy, a good proportion of which are keen to trade FX, especially with overseas firms.
In the past year, FXPRIMUS has achieved rapid development in China, and the company’s representative office in Shanghai is based on the rapid growth of this emerging market.
FXPRIMUS is headquartered in Mauritius under the supervision of the FSC (Financial Service Commission), and maintains a relationship with Barclays Bank for the purposes of maintaining client assets in a segregated account.
A senior executive within FXPRIMUS China spoke to Forex Magnates with regard to the opening of the representative office: “With China’s rapidly growing business sectors, it is paramount for our representative office to be in the financial center of Shanghai, which will help us to better serve our Chinese investors. ”
FXPRIMUS parent company, PrimeMantle Corporation PLC, plans to IPO in October this year, to be listed on the Frankfurt Stock Exchange in Germany.