In April 2016 the State Administration of Foreign Exchange (SAFE) said China’s foreign exchange (Forex) market reported a 10.71 trillion yuan ($1.65 trillion) turn over in March, increasing by more than 60% compared to the previous month (up from 6.55 trillion yuan). Of this 10.71 trillion, 82% (8.85 trillion yuan) come from the transactions between inter-bank forex transactions.

This turnover is expected to continue to grow as more investors continue to enter the Chinese market. In 2015, in order to position its forex market as a transparent market, China opened it to overseas central banks and similar institutions and has since accepted over 20 new overseas, central banks.

CHINA’S POLICIES

 

 

The Forex Trading market in China is notoriously difficult to break into. The Chinese government has set up a host of rules and regulations for western companies that want to conduct forex trading business in China.

• The Forex technical system in China is very different from other international models and this can lead to complexities affecting Chinese economic growth.

• Experts see Forex Trading as a risk prone market which could bring a lot of instability to the Chinese economy. Many Chinese people are involved in this market with the potential loss of people’s investment and savings.

An important point about the Chinese forex market is that the majority of transactions are traded in Yuan rather than US Dollars. This is an indicator of the strength and status of the RMB as it grows on the international stage. It also aims to generate wealth in the local currency and strengthen the domestic market.

THE CHANGING MARKET PLACE

The Chinese marketplace changes constantly and it is important to keep on top of the latest developments. Baidu, the largest search engine, is now tightening its grip on Forex advertising. Baidu announced a ban on binary broker ads and limitations placed on forex brokers placing paid ads. The news is a sobering for forex brokers in China who typically rely on the direct client acquisition models. Baidu holds 70% of the entire search traffic in China, reflecting about 6,000,000 searches per month related to forex and binary.

OPPORTUNITIES IN FINANCE INDUSTRY

With every cloud comes a silver lining. The regulations do not affect those with the right business licenses on Baidu and the limitations are placed on advertising links, not on optimization in the natural search results; this is where the highest quality of lead generation occurs. Baidu remains the number one platform for business development.

Restrictions in many ways present opportunities with competitors dissuaded from entering the market, a greater emphasis placed on visibility in the natural search rankings is no bad thing, this is the most sustainable and long term approach to improving a forex company’s reputation and presence online in order to drive leads.

Alternatively, in the last few years, social media, mobile app development, various forms of DSP campaigns and even offline activities have been on the rise. Finding new marketing channels is a priority for serious marketing players who realized the trend early.

The changing regulations underscores the importance of partnering with a local specialist who understands the market place and is aware of local trends for Forex businesses to capitalize upon.

The forex market is very competitive in China, let’s see how Digital Marketing and Search Engine Marketing (SEM) can help you to succeed in this market..

PR / E REPUTATION

In order to grow visibility, reputation and generate leads you need to position your business as experts in Forex market. In order to do so, you will need to publish relevant articles on specialized industry web sites and blogs in China. Great exposure combined with external references from other sites will position you as an expert in the industry. You need to target some leading financial websites and influential newspapers such as forexqq.com.

First, before investing with any forex trading agency, the Chinese will search online. You need them to find good comments and reviews about your services, if not, they won’t trust and believe your service is reliable. If you have negative comments from aggressive competitors, you have to know how to manage them. Positive comments need to be up-ranked an highly visible so potential leads find them.

QUALITY WEBSITE

A quality website in Chinese is vital. Video content on the home page is immediate and attractive whilst in-built customer messaging and links to content and an official WeChat page are considered the norm. Chinese web pages have a certain aesthetic style in terms of the front end. Regarding the back end, the site needs to optimized for Baidu with Chinese character references, meta descriptions and internal links. Hosting on a Chinese server is also important as Baidu prioritizes speed of load times in the search results.

Video of Introduction of a Chinese Financial Services Company