Saxo Capital Markets HK Limited has been awarded type 4 and type 9 licenses from Hong Kong’s regulator, SFC.
The acquisition of these licenses are part of Saxo’s expansion strategy in China and Hong Kong. A play that has been ongoing for several years but took a new pace after Chinese multinational automotive company, Geely, acquired a majority stake in Saxo Bank.
Saxo established a China office in the Shanghai Free-Trade Zone in September 2015 and has since then signed extensive financial technology partnerships as part of its Greater China strategy.
Geely International Hong Kong, a subsidiary of Geely Group, became a shareholder in Saxo in 2017 after acquiring a 25.71% stake and, one year later, the Chinese multinational took over after agreeing to hold 52% of the trading company.
Geely’s acquisition of Saxo Bank came amid a complete role-reversal that took place in China which created a massive opportunity for multi-asset FX brokers.
The new law against regional exchanges opened the door to retail FX as companies look toward OTC electronic trading via international liquidity providers in order to retain their existing audience and branch out, whilst protecting themselves against closure.
Earlier this year, Saxo Bank reported a 400% growth in client deposits since Geely took over the company.
Now, the new licenses obtained from Hong Kong’s SFC will allow Saxo Markets to provide asset and wealth management services to investors.
Richard Douglas, Chief Executive Officer for Hong Kong at Saxo Markets, said: “The licenses give us greater room to now provide more comprehensive services to clients, whether they want to trade global capital markets or invest into their future. It’s especially meaningful for the Hong Kong office, as Hong Kong is a key growth market for Saxo and the gateway connected to mainland China”
Saxo Markets will be adding the Type 4 and 9 licenses to the SFC Type 1, 2, and 3 licenses the brokerage firm currently holds.
Lester Chan, head of wealth management and responsible officer of Saxo Markets, commented: “Investors in Hong Kong now are very much digital-savvy. They are looking for an easy-to-use platform that can provide tailor-made solutions based on their financial situations, and can handle their needs through one single account with top-level professional assistance.”
Saxo keeps growing its client base at a fast speed, having onboarded more than 159,000 new accounts in the first half of 2021.
Total active accounts now amount to more than 790,000 and total clients’ assets under custody have surpassed DKK 595 billion as of 30 June 2021.
The post Saxo Markets HK obtains license for wealth management appeared first on FinanceFeeds.