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 since 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. Hong Kong foreign exchange market is an invisible market without a fixed trading venue. Traders conduct foreign exchange transactions through various modern communication facilities and computer networks. Hong Kongs 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 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 have expanded their business to the Hong Kong foreign exchange market since the 1970s; international brokers that grow locally and has expanded their business to foreign exchange markets abroad. In an attempt to help investors or practitioners gain a more comprehensive understanding of current foreign exchange brokers in Hong Kong, WikiFX survey team determines to pay on-site visits to local companies.

On-site visit

In this issue, the survey team went to Hong Kong to visit broker PoSang as planned according to its regulatory address that 4/F, BOC Yuen Long Commercial Centre, 102-108 Castle Peak Road, Yuen Long, New Territories.

The investigators came to BOC Yuen Long Commercial Centre at 102-108 Castle Peak Road in Yuen Long, Hong Kong on December 6, 2023. Adjacent to the bustling street, the modern commercial building is located in a prime commercial area easily accessible by public transport including MTR Light Rail, with Bank of China on the ground floor. Additionally, there are also plenty of shops, restaurants, banks, and department stores nearby in a prosperous surrounding environment, appealing to a steady stream of citizens and tourists for a wealth of shopping and living options.

Upon arrival at the building, the survey personnel discovered that the security guards at the entrance of Bank of China could easily monitor all the people who entered and exited. In the meantime, with the help of CCTV in the building, the administrators could also monitor both inside and outside dynamics with ease. Additionally, the lobby directory conspicuously displayed that the 4th floor is occupied by Po Sang Securities Limited.

Upon access to the 4th floor via the lift for further investigation, the inquiry team discovered that PoSangs logo and company name were displayed on the entire floor, showcasing the professional image of the company.

Through the on-side investigation, it is confirmed that the broker has a physical presence at the location.

Conclusion

The survey team went to Hong Kong to visit broker PoSang as scheduled, and found the company‘s name at its regulatory address. This signifies that the broker has a physical business office at the place. Unfortunately, it’s unable to determine the actual company size of the broker due to the failure to take photos inside. Meanwhile, investors are advised to make an informed decision following an overall consideration.

Disclaimer

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