As a staff member of a foreign exchange retail trader that has provided discourse services in China for six years, I can answer your question.

First of all, we can look at the current international situation. Take the most developed United States as an example. For OTC transactions, since the financial crisis, the United States has introduced the Dodd-Frank Act (also known as the Commodity Futures Act). There are many, very strict and detailed regulations on financial derivatives. For the foreign exchange market, there are restrictions on leverage and FIFO trading mechanisms. To put it bluntly, investors are not strongly encouraged to do OTC foreign exchange transactions.

China once opened up. The short-lived spring of Bank of China, Bank of Communications, and Minsheng Bank could be described as hot, but the result was that investors were enthusiastic and came out disheartened (because (I didn’t understand the trading mechanism, etc. and suffered serious losses). Later, the China Banking Regulatory Commission stopped it. Everyone has begun to speculate on when it will be opened again. In fact, in my opinion, according to the current form of the domestic investment market, I don’t think it will be opened within 5 years. Although Wenzhou has piloted personal overseas investment before, (opening and then hastily called a halt), etc., but these are very shallow tests of the water and are not considered substantive actions in this regard. According to the current standardization of domestic financial markets, the completeness of relevant regulatory mechanisms, and the integrity of laws and regulations, this improvement process takes time, especially this kind of derivatives trading, which requires time and experience.

Taking a step back, even if foreign exchange retail is opened up, international retailers like us will not be the first to benefit. Although we are absolutely qualified in the United States and around the world, if China Opening up must first start with commercial banks. I don’t need to elaborate on the principle of “don’t let outsiders have money”. Once the market share of commercial banks has stabilized and the time is right, it will take time to introduce foreign traders. . For example, do you think people around the world recognize JP Morgan Bank or Industrial and Commercial Bank of China? But in China, JP Morgan Bank just can't compare with Industrial and Commercial Bank of China. This is called national conditions, or it can also be called "a strong dragon cannot suppress a local snake." Sovereign countries must have some self-protection. Even if you don't do well, it's your own business.

To sum up, in the short term, China will not open its foreign exchange retail market. Many front-line salespeople in the market tell investors that it will open immediately. I personally think that these people do not understand. this market.

If you have further questions, you can discuss them in detail