Reason for this visit

The international foreign exchange market in Hong Kong has been developing since the 1970s. Due to the removal of foreign exchange control in Hong Kong in 1973, there has been a large inflow of international capital, and an increasing number of financial institutions operating foreign exchange business have mushroomed. The foreign exchange market has become more and more active, developing into an international foreign exchange market. The Hong Kong foreign exchange market is an invisible market with no fixed trading venue. Traders conduct foreign exchange transactions through various modern communication facilities and computer networks. Hong Kong's geographical location and time zone conditions are similar to those of Singapore, making it very convenient to trade with other international foreign exchange markets. Participants in the Hong Kong foreign exchange market are mainly commercial banks and financial companies. There are three types of foreign exchange brokers in this market: local brokers, whose business is limited to Hong Kong; international brokers, who expanded their business to the Hong Kong foreign exchange market after the 1970s; international brokers that developed in Hong Kong, whose business has expanded to foreign exchange markets abroad. In order to help investors or practitioners to have a more comprehensive understanding of foreign exchange brokers in Hong Kong, the survey team is going to pay on-site visits to local platforms.

On-site visit

In this issue, the investigation team went to Hong Kong, China to visit the foreign exchange broker WF (licensee: Wing Fung Precious Metals Ltd.) as planned according to its registered regulatory address that 20/F, Wing On House, 71 Des Voeux Road Central, Hong Kong.

The survey personnel came to the destination in a primary business area of Hong Kong on April 1, 2023, where a common office building is situated, with convenient transportation including MTR and others. On the ground floor are banks including Bank of China, Public Bank, etc. There are also plenty of shops, restaurants, residential buildings, and department stores nearby surrounded by a clean environment with huge crowds of people.

After entering the building, the survey team found that the 20/F was occupied by the related companies of Wing Fung Group, including Wing Fung Precious Metals Ltd. from the company directory in the lobby.

Then the investigators arrived at the 20th floor by elevator, but was told by the building administrator that people wasnt allowed to visit any company without a staff card or a reservation in advance.

After an on-site investigation, it is confirmed that WF does have a physical presence here.

Conclusion

The investigators went to Hong Kong to visit forex broker WF as scheduled, and found the companys name at its registered regulatory address, which indicates that it has a physical business office here. Unfortunately, the survey personnel were not able to enter the company for a special visit, so the specific scale of its business is unknown. Investors are advised to make a sensible choice based on a comprehensive consideration.

Disclaimer

The content is used for informational purpose only, and shall not be taken as a final order for making a choice.