Weighing the Challenges and Potential of the Chinese Market in 2018

With regard to FX, China has been thrust into the spotlight - is the country ready to reach its potential?

An increasingly competitive foreign exchange (FX) industry has seen brokers looking towards new regions with China remaining as one of the most promising long-term options. While the region has enormous potential, there remain several challenges to setting up shop in the country while also transplanting operations into a new market.

Discover credible partners and premium clients at China’s leading finance event!

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

China has increasingly been center stage for a series of industry developments, not limited to the FX space. Looking at 2018 and beyond, the region will be instrumental for brokers moving to secure a new and growing client base. However, the country and the broader Asia-Pacific (APAC) region do possess challenges to entering.

Whether it be localization costs or concerns or regulatory hurdles, brokers have been treading somewhat cautiously. With the 2018 Asia Trading Summit coming this March, the focus on China has never been stronger. While most brokers and industry executives agree on a generally bullish future for China, there are multiple headwinds that must be overcome for the FX industry to fully take off and reach maturity.

Eugenio Accongiagioco

One area of concern is related to complaints from Chinese clientele. This issue was echoed by Eugenio Accongiagioco, CEO of APAC Management Consultancy, who warned: “All the biggest troubles in China today (issues with authorities, IB blackmails, CUP PSPs cutting FX merchants, office/expo “siege”) are all originated by clients’ complaints.”

Therefore, “any measure aimed at preventing complaints (whether they are in good or bad faith) will improve the whole market: treating customers fairly, rejecting dodgy IBs and clients, making crystal clear each and every aspects of trading conditions for both clients and IBs (including rebates for each single product traded), improving the trading server speed from China, training and supervising properly the Chinese sales,” he added.

Indeed, many brokers are looking to shore up these issues, which have by and large gradually seen an improvement. However, while the FX industry has grown within China, its future is still one that is defined by potential rather than certainty. As the recent example of China’s stance on initial coin offerings (ICOs) highlighted, the country has shown a tendency to abruptly shift course on specific segments.

Suggested articles

What to Look for in a Liquidity ProviderGo to article >>

Asia Trading Summit focusing on industry’s future

Consequently, the FX industry will be looking to take the next leap in 2018 and in the upcoming years. As a further nod to the region’s importance, the Asia Trading Summit on March 21-23 at the Shanghai Exhibition Center will be focusing on these issues and others, addressing the most relevant topics and burning concerns currently unfolding in China and the APAC region.

Hosted by Finance Magnates, Conversion Pros, and premium Chinese FX news source, FX168, the event will take place in Shanghai. The two-day summit will look to bridge the East and West, bringing together executives and thought leaders from every corner of the globe. More information regarding the event can be accessed by the following link.

Who will be there?

The concentration of specialists in Asia meeting with brokers and other industry players in the West and other regions represents a unique atmosphere for attendees. In just its second year, the Asia Trading Summit has quickly solidified itself as one of the marquee trading events in the region.

As such, the event will also include introducing brokers, trading experts from virtually every corner of the industry, local tool providers for traders, respected members of the Chinese financial media, local investors, traders, and affiliates, fintech companies, service providers, and many more.

A series of panels, workshops, and discussions will also be discussing China’s role and future within the FX orbit, while also delving into other asset classes such as cryptocurrencies. With a packed agenda, the Asia Trading Summit will look to build off of last year’s strong debut, which saw over 5,000 attendees converge on Shanghai.

Got a news tip? Let Us Know