Multi-asset broker Saxo Bank and Geely Sweden Holdings AB announced this Tuesday that they have signed an agreement where the two parties will establish a technological joint venture in China.
The joint venture, which will be an equal 50 percent split between Saxo Bank and Geely, will provide financial and regulatory technology solutions. These will be targeted to financial institutions such as banks and fintechs in the country.
The new entity will utilize the financial and regulatory technology currently used by Saxo Bank, as well as the broker’s experience with providing technological investment platform development services.
Geely, on the other hand, will support the deployment and operation of the venture. In particular, it will provide local know-how, so the entity is relevant in China. As Finance Magnates reported, Zhejiang Geely Holding Group Co. Ltd acquired a majority stake in the Danish broker last year.
Commenting on the announcement, Kim Fournais, CEO and founder of Saxo Bank, said: “The establishment of the technological JV is a significant milestone for the Saxo Group with unique commercial opportunities. I am very proud that we are strengthening our presence in China with the support of our partner, Geely.”
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“We will work hard with a long-term focus to build our business in China and create win-win with partners looking to leverage our technology to support their clients. This is a very important first step in strengthening our presence in China.”
“And we will continue to explore further opportunities, working in tandem with regulators and the opening of Chinese markets, to provide transparent, efficient and safe access to investment opportunities in global financial markets building on our experience with tailoring our technology to highly regulated markets across the globe.”
Saxo Bank continues China expansion
Through this new company, Saxo Bank is significantly increasing its presence in China. In the long-term, the broker is looking to capitalize on the opportunities in China, which are becoming increasingly more available as the company continues to open its financial markets.
“We are very pleased to deepen our cooperation and partnership with Saxo Bank and introduce the bank’s global financial and regulatory technology to the Chinese market,” added Daniel Donghui Li, Executive Vice President and Chief Financial Officer of Geely Holding Group.
“We are confident that with Saxo’s successful experience in the global market and Geely’s rich local know-how, the JV will improve China’s fintech capabilities in areas including trading, investment, pricing, investment consulting and regtech.”