Now that’s a surprising turnaround, Gain Capital had a major issue with the China regulation back in 2008-2009 which severely affected its profitability – as a direct result of that Gain’s income in H1 2009 was $11 million less than in same period in 2008. Gain had to leave China completely, losing tens of thousands of accounts – this can be seen in details in one of the first pre-IPO documents Gain filed back in 2009. It’s surprising that given this history Gain was given a permission to operate in China but nonetheless it seems that this time everything was done by the book, hence the official authorization.
I argued the huge importance of being close to this immense market last week when discussing spot Yuan trading. Eventually it’ll open up for spot fx trading as well.
GAIN Capital Holdings, Inc., a global provider of online trading services, announced today that it has received formal regulatory approval from the China Banking Regulatory Commission (CBRC) to open a representative office in Beijing.
“Receiving the CBRC’s approval is an important step towards expanding our business in one of the fastest growing economies in the world,” commented Glenn Stevens, CEO of GAIN Capital. “We believe the Beijing representative office will assist us in building strong relationships in China’s growing financial community and help provide a strong foundation for our future strategic plans in that country.”
GAIN Capital’s representative office will focus on building GAIN Capital’s brand in China, conducting market research on China’s financial regulations and market environments and facilitating the company’s relationships with Chinese financial institutions.
The CBRC is the primary banking regulator in China, supervising banks and non-bank institutions and their business operations within the country.
GAIN Capital’s Beijing office will be located at the Central International Trade Center. The office will extend GAIN Capital’s presence in the Asia-Pacific region, which currently includes offices in Hong Kong, Sydney, Singapore, Tokyo and Seoul.
About GAIN Capital
GAIN Capital Holdings, Inc. (NYSE:GCAP) is a global provider of online trading services. GAIN’s innovative trading technology provides market access and highly automated trade execution services across multiple asset classes, including foreign exchange (forex or FX), contracts for difference (CFDs) and exchange-based products, to a diverse client base of retail and institutional investors.
A pioneer in online forex trading, GAIN Capital operates FOREX.com®, one of the largest and best-known brands in the retail forex industry. GAIN’s other businesses include GAIN GTX, a fully independent FX ECN for hedge funds and institutions, and GAIN Securities, Inc. (member FINRA/SIPC) a licensed U.S. broker-dealer.
GAIN Capital and its affiliates have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore and Seoul.
For company information, visit www.gaincapital.com.
All trade names are the property of their respective owners.
SOURCE GAIN Capital Holdings, Inc.
As trading forex is not legal in PRC, what on earth do they plan to do there? perhaps they know something we don’t regarding opening up Renminbi to freely trade?