Saxo Bank’s Asia Pacific subsidiary, Saxo Capital Markets, has opened a Hong Kong office, its fourth in the region, to focus on a growing demand for foreign exchange trading from retail investors. Saxo Capital Markets already has offices in Singapore, Sydney and Tokyo.
“The post-global financial crisis sees a paradigm change in retail investment behaviour in Hong Kong, with stronger emphasis on portfolio and risk diversification. Market uncertainties over the past two years have also created upsides in non-equity asset classes including forex and commodities,” says Francis Lee, managing director of Saxo Capital Markets Hong Kong.
“We are seeing a trend for Hong Kong retail investors who have traditionally traded equities and warrants moving towards multi-asset investing.”
According to the Bank for International Settlements, daily average foreign exchange market turnover reached $4 trillion in 2010, 20% higher than in 2007. The growth in Hong Kong grew even more, rising 86% from $5.4 billion in 2007 to $10.1 billion in 2010. Hong Kong is now the sixth largest FX market globally in terms of daily FX turnover.
With the Asia Pacific region currently accounting for a third of Saxo Bank Group’s revenue and new business, the launch of SCM Hong Kong aims to strengthen and expand the company’s trading presence in Asia. SCM Hong Kong offers investors foreign exchange and equities trading on the SaxoTrader platform as well as white labelled services to clients such as Citi and BWC Forex.
“We anticipate robust growth in multi-asset online trading as the needs of the two million retail investors grow and diversify in tandem with the changing market dynamics in the city,” Francis says.