Xi Jinping’s vision of “New Era” includes Forex Industry to focus on China

On Wednesday, 18th of October, the Communist Party of China held its Communist Party Congress in Beijing, which is the twice-a-decade event. The central focus of Chinese President Xi Jinping was on the assured vision for the nation’s prosperity and its presence in the world. The “New Era” includes building country determinately governed by the party, being open to the rest of the world and being proudly Chinese.

Due to the enormous trading volumes, currently, China stands out as the forthcoming homeland for retail Forex. Introducing brokers operate the vast managed accounts, therefore, a very definitive format now is conduction of business between Western service and brokerage providers on one side and the key introducing partners and brokers in China on the other side.

Furthermore, Xi Jinping accentuated endorsement for the manner of conducting business globally in the precise approach the Forex industry imitated lately. Namely, through partnerships and JV (Joint Ventures) with Chinese enterprises performing the global business with the supervision of the government from within China via the internet.

In behalf of the risk broadcasting sensitive data within and out of China as well as to highlight the requirement of utilizing Chinese systems, e.g. Wechat and Baidu, the Chinese Government blocked Skype and Whatsapp. Thus, stressing the importance of national tools when working with Chinese companies.

A superb situation for the Forex industry is also the “Belt and Road” system on account of presenting extensive opportunities for service suppliers as well as for brokers. The central goal the cooperation with Chinese partners to bring the inclusive answer to the public globally.

Additionally, China’s president admits that RMB cannot become a reserve currency due to the communist rule in China. Flow of RMB is restricted and the Party infuses market activities. Nevertheless, RMB will probably become pre-requisite as the enterprises conducting business will be expected to pay RMB for services. That will result in Western companies becoming more dependent on China, also in the other regions, as Chinese partners with Western enterprises will collaborate closer-than-ever, thus being a strategically smart move by Xi Jinping.

Completely new means will be introduced for prime of prime brokers from mainland China and they will contribute liquidity for Chinese retail brokerages. In countries across many regions, with infrastructure encouraged by the Chinese government, new management of liquidity and bridge opportunity will co-exist.

Today, China has obtained the status of “the center of the world” and continues market – oriented reform of country’s financial system and exchange rate, alongside rejuvenating state firms.