New Policies about the Foreign Investment in China

China Is Moving Ahead With New Financial Reforms. After Donald Trump’s visit to the second world economy, the first of the president of the United States to whom imperial treatment was reserved (he was the first foreign leader to dine in the Forbidden City since 1949), China announced the elimination restrictions on foreign investment on its financial markets.

The Ministry of Commerce of Beijing has announced the removal of limits to the participation quotas of foreign groups to companies operating in the stock, land and futures sectors, according to the Xinhua news agency, which quotes the vice minister, Zhu Guangyao. Foreign groups may hold shares of up to 51%, compared to the current 49% limit. A measure immediately welcomed by the stock markets of the Colossus of the East and which will be introduced gradually within three years for mediation companies, those dealing with managed funds and fixed-term contracts. Extensive spillovers on the banking front: the Chinese vice minister has also announced that the restrictions on ownership by foreign groups in the banking and financial sectors will be removed. Currently, a foreign investor can not hold more than 25% of the capital in a Chinese credit institution (20% is the limit for the individual investor, 25% for the complex of the foreign group)

The step taken by Beijing appears to be important, allowing foreigners to hold the majority of the capital in the financial industry for the first time. A countertrend compared to the measures adopted some years ago, when controls on the movements of capital were imposed, in order to stop or slow down its outflows. An opportunity for investors all over the world, being the second largest economy on the planet and with a growth rate of at least three times higher than those of the USA and Europe.

Importance of Marketing in the Finance Industry

Regardless of the industry that your business is operating in, marketing should be considered as an important aspect of your overall strategy. It is essential if you want to reach your target consumer base. If you don’t invest in marketing, how is anyone going to find you? Therein lies the importance of marketing. The financial services industry is an extremely competitive sector. As such, it is both difficult and important to strive to stand out from other companies. When it comes to money matters, exchange rates, stocks, and other financial statistics are constantly fluctuating and as such, people want real-time information. Companies that can provide that data to their customers are one above their competitors because they add an extra level of customer care.

Branding is Everything

Branding is not an area to scrimp on. After all, your branding completely defines your business. Your branding lets customers know which end of the spectrum your company falls into within its niche. Ideally, customers should be able to glance at your business and just know what your business is about, without having to conduct further research or go prowling around your website.

  • Be present online

The new trend in China is M-Commerce. This market is developing more and more and has grown steadily. Take advantage of this trend. Purchases on your mobile phone are simple, effective and practical with a payment time of approximately 67 seconds. Your site must be able to be accessible on your smartphone. Do not forget that there are more than 1 billion smartphone users in China. If you have a smartphone presence, they can alone generate 50% of your sales

Use the right channels

The most used search engine is Baidu: Google only collects 1.7% of the market share and is mostly used by expats residing in China. In Chinese, Baidu collects almost 75% of users’ searches and is used not only for desktop and mobile searches but also for its connected platforms: Baidu Baike (a sort of integrated Wikipedia) and Baidu Tieba, similar to Google+. For a company that wants to be found in China, it is therefore essential that its site is optimized for this search engine. In addition to being correctly translated into Chinese.

Understanding Chinese social media

No Facebook, Instagram or WhatsApp. Chinese users to communicate and share information using very advanced local platforms such as WeChat and Weibo. Chinese give more confidence and credibility to the comments left by their peers on the social network than the comments left on the official website of the company. Be present on Chinese social media, for more information about how to leverage your wechat or Weibo for increasing engagement click here.

Do you want to develop your business in China? Talk with our experts. Contact Gentlemen Marketing Agency




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