Guotai Junan, a forex and CFD broker based in Hong Kong is the first company, outside mainland China, to obtain an official Forex License from the Chinese government – a landmark step in the process of liberalization of the Chinese financial sector.
The broker has been allowed to offer “spot forex, futures and swap currency trading operations” on the mainland Chinese market, without the requirement for its clients to have Hong Kong bank accounts and to hold Hong Kong dollars. The information is reported by the Chinese Forex Trading Center on Monday.
The only drawback is that under the current Chinese regulations Guotai Junan will be able to offer its customers leverage no higher than 20:1, and that is significantly lower than the leverage, offered by the local brokers.
Guotai Junan is operated by Guotai Junan International Holdings Limited, an investment holding company offering securities, futures, options and leveraged foreign exchange trade and insurance brokerage services.
The holding company also has a Corporate Finance segment, offering advisory services, placing and underwriting services of debt and equity securities, as well as an Asset Management segment engaged in fund management and the provision of investment advisory services and a Loans and Financing segment, engaged in the provision of margin financing and securities borrowing and lending.
In addition the Investment Holding and Market Making segment of Guotai Junan International Holdings Limited is engaged in fund and equity investments.
Guotai Junan will offer its services to clients in mainland China on the MetaTrader4 platform, which is well known platform, preferred by beginner and professional traders alike.