PBOC Vows to Strengthen Supervision of Foreign Exchange Trading Platforms

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.”

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term 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 Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term 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.

Market Complications

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.