Full List of Forex Brokers in China
Forex trading has become very popular for investors globally. However, not all countries are embracing the world of Forex trading as much as some. China, is a fine example, and when doing the research for this article we found that the rules and regulations can be very confusing.
Let’s start with a few pertinent facts about the People’s Republic of China.
A brief introduction to China
Officially known as the People’s Republic of China, it is a sovereign state in East Asia. It is a single party state, and the population is more than 1.4 billion. It is governed by the Communist Party of China, and the capital is Beijing. The PRC covers nearly 10 million square kilometers, and is the second largest state by land area. The landscape of China is very diverse, and ranges from desert landscapes to subtropical forests.
China is said to be the cradle of civilization, with the world’s earliest flourishing in the fertile basis of the Yellow River. Economic reforms were introduced in 1978, and China became one of the world’s fastest growing economies. Although experts are saying that it appears to be slowing down in recent years.
The basics of Forex trading in China
Following the reforms in 1978, China started to move away from a centrally planned economy, and towards a more market-based economy, although it is still not considered to be a totally free market. This is one of many reasons why foreign investors are not too keen on starting a business in China. The Chinese government is, however, actively encouraging the growth of Chinese industry and its expansion overseas, as well as protecting domestic industries.
Many experts consider China to be an economic powerhouse, due in part to high literacy rates, vast labor force, high life expectancy, and the fact that there are more internet users in China than anywhere else in the world. Which has also helped to fuel industrial interest, and that includes Forex brokers in China.
China has actually become very dependant on the foreign exchange markets and it has turned into an important if the national economy. Billions of dollars are generated every year, all thanks to Chinese Forex traders and brokers.
The symbol used for the Renminbi Yuan (The official Chinese currency) is CNY. Exchange rates for the Yuan are set by the Chinese Central Bank. The rate is set after taking into account factors such as economic and political developments internationally. The Chinese Yuan is becoming one of the most traded currencies in the which, and it has been aided by the expansion of the foreign exchange market in China.
Most Trusted Forex Brokers In China 2019
How does it look for Forex brokers in China?
It hasn’t always been easy for western companies to get into the Chinese market, and this included Forex companies and brokers. The business environment in China is much different to anywhere else in the world, which can be rather off putting. There are still a number of restrictions in place for non-domestic Forex brokers in China, but the country is slowly opening up to the world of the international forex market.
Forex brokers in China, are managing to gain a foothold in the Chinese market by working with local representatives based in China. The purpose of these local Chinese forex brokers is to act as introductory brokers, and build up a network of clients who trust them and are happy to work with them on a long term basis. This is a common way of doing business in China, where business relationships based on trust are more usual.
Working with representatives rather than direct is considered an independent operation and not bound by the Chinese government restrictions and interventions. If it was a joint venture or partnership, this would be considered illegal. Another problem that makes it difficult for Forex brokers to operate in China is there is still no real clarity as to whether margin forex status is a tradeable class of assets for investors.
The future of the Forex market in China
Fuelled by the growth of international trade in China, the Yuan is being traded as a currency in the global forex market in very large volumes. There are a few banks that carry out foreign exchange trading in China, as well as a number of Forex brokers. Generally the standard of service is pretty good, and the rates offered are competitive. There are a number of websites that operate in China and they provide reliable information about the Chinese foreign exchange market.
The China Banking Regulatory Commission (CBRC) and the Chinese government both consider Forex to be a highly leveraged product, which means it is not that popular an investment choice. There are still a number of hindrances to prevent Forex trading from completely taking over, so there is a long way to go. But currently there are a number of Forex brokers in China who are worth considering.