Just as the wind of regulatory changes in Europe has reached peak velocity and we now know what are the final deadlines for implementing ESMA regulations, Chinese authorities are on the wires again.
According to comments from People’s Bank of China (PBOC) officials, local authorities are paying close attention to internet finance. Chinese officials have vowed to protect the financial system and are firmly committed to supervising the activities of online entities among others.
In an online statement issued after a meeting with the Ministry of Public Security, the PBOC stated that the two regulators have committed to coordinating their efforts to “safeguard financial markets order.”
FBS Receives Best Forex Broker Europe 2019 Award by The European MagazineGo to article >>
Forex Trading Platforms Singled Out
Chinese authorities have committed to crack down on shadow banks, internet finance, and foreign exchange trading platforms. Business in China has become more difficult in recent months, as authorities seem to be exploring how are firms that are offering forex trading affecting the ways in which Chinese residents can move money outside of the country.
Chinese authorities already voiced some concerns at the beginning of the year, and today’s announcement signals that there aren’t any changes in the official status quo. The capital controls which are imposed in the country have been the focus of regulatory attention for a number of years.
Hong Kong has remained a kind of a safe haven for the industry as a number of brokers moved their operations from mainland China. The Chinese market has become increasingly more important for global brokers who are bracing for the impact of the new European regulatory framework.
With the upcoming August 1st deadline for the implementation of a leverage cap on trading in Europe, brokers will be increasingly more focused on markets outside of the EU. Recent years have seen a number of companies attempt to dominate the Chinese market with local partnerships being instrumental for success.