China’s Trade-From-Anywhere Markets Face Their Biggest Test

By Lulu Yilun Chen and Cindy Wang

2020年2月13日 GMT+8 上午5:00

China’s coronavirus outbreak is putting the country’s market infrastructure to the test like never before, highlighting the strengths and weaknesses of a decade-long effort to digitize nearly every aspect of securities trading.

With much of China’s financial industry working remotely over the past two weeks, trading in the nation’s giant equity and debt markets has continued without any major hiccups. At the same time, some firms are discovering limitations to contingency plans and work-from-home arrangements that may lead to a renewed focus on improving their digital capabilities.

Partly spurred by competition from a new breed of startups, China’s biggest financial companies have invested billions in cloud computing and other virtual infrastructure in recent years, enabling a relatively smooth transition to remote work for their employees. The outbreak may encourage laggards to step up their investments, while giving fintech firms a fresh opening to pitch services from mobile client management to digital security.

“China’s finance industry is probably one of the better prepared sectors for dealing with this crisis,” said Zhao Xinge, a Shanghai-based professor of finance at China Europe International Business School. “It grew in tandem with the development of the internet and technology, and the advantages of that effort are showing now.”

Trading activity in China’s $7.4 trillion stock market has soared since it reopened after the weeklong Lunar New Year break, with millions of amateur and professional investors placing bets from smartphones or home PCs. (Transactions in debt and currency markets have been more subdued, at about half the daily average over the past year.)

Remote access to office software via virtual private networks has kept disruptions to a minimum, brokers say, though slower internet speeds have been an issue for some.

He Qi, a fund manager at Huatai Pinebridge Fund Management Co. in Shanghai, said that while the current setup was “very inconvenient,” his department has only had to send a few people into the office to execute trades. Founder Securities Co., a Beijing-based financial services firm, said it’s requiring a small number of staff on rotation in the office while the rest work remotely.

Starting with the advent of online payments and electronic trading around the turn of the century, China has developed modern financial infrastructure that is in many ways on par with, or better than, more developed nations.

The International Monetary Fund has called the country a global leader in the application of technology to financial services, pointing to a combination of market scale, light-touch early regulation and the ability of large fintech firms to build integrated ecosystems.

The Shanghai stock exchange, for example, built an online trading network deploying encryption and identity verification systems as early as 2002. Today, 95% of securities trading is done online or via mobile apps, according to China’s securities watchdog. Most brokerages allow investors to place orders and set up new trading accounts over the internet, using online identity verification services that combine image and voice recognition.

Some fintech companies have seen a jump in demand for their services during the outbreak. Daily activity at Tencent Holdings Ltd.-backed QTrade, which operates a bond-market messaging service used by more than 600 institutions, has spiked by as much as 20% since the virus began forcing investors to work remotely.


“This outbreak presents an opportunity for China’s bond trading to become even more digitized,” said Fiona Liu, a co-founder of QTrade. “It gives companies a reason to further compartmentalize trading procedures, so more people can work without having to be physically present in the office.”


Bond traders use QTrade’s platform to negotiate prices via the QQ messaging app. It verifies identities, logs conversations and transactions for at least five years, and complies with securities regulations. In response to the outbreak, QTrade added a service that enables users to get in touch with traders on duty.


Bloomberg LP, the parent of Bloomberg News, provides similar messaging and compliance services to traders.

For many in the financial industry, the past few weeks have underscored the need for continued vigilance to ensure their firms can keep operating at full capacity during crises.

“If the situation of working from home persists into next week or longer, the company may need to invest in software” to address backlog issues, said Amy Lin, analyst at Capital Securities in Shanghai. “In any case, digitization of companies will speed up because of this.”

本文分享自微信公众号 - 腾讯企点(TencentQiDian),作者:腾讯企点QTrade

原文出处及转载信息见文内详细说明,如有侵权,请联系 yunjia_community@tencent.com 删除。




0 条评论
登录 后参与评论


  • 云时代,电商行业如何通过营销实现精准转化(内附干货下载)

    腾讯企点-智慧经营私享会 疫情掀起【在线化】热潮。线上业务崛起,行业重新洗牌。然而,【在线化】是把线下模式照搬线上就能实现吗?在线经营是否已成发展趋势?我们请...

  • 卧底100多个微信群后,我总结了体验课营销的5个套路

    ? -本文转自教育领域垂直媒体- 芥末堆看教育(ID:jiemoedu) 作者:独孤伤 对于在线教育来说,最常用且效果可控的获客转化方式,非体验课莫属了。 ...

  • 火热报名 | 全球央行大放水,金融市场风险如何评估?


  • 【论文推荐】最新八篇强化学习相关论文—残差网络、QMIX、元学习、动态速率分配、分层强化学习、抽象概况、快速物体检测、SOM

    【导读】专知内容组整理了最近八篇强化学习(Reinforcement learning)相关文章,为大家进行介绍,欢迎查看! 1.BlockDrop: Dyna...

  • Germany flips to Apple-Google approach on phone contact tracing

    Germany flips to Apple-Google approach on smartphone contact tracing

  • 追求卓越,勇攀高峰 - RWP中国之旅盛大来袭

    编辑手记:3月28日,Oracle RWP 性能之旅,北京站再度来袭!Andrew Holdsworth 和 Graham Wood 将带领大家在一天之内,探...

  • 区块链可以减少社会不平等吗?

    本文在腾讯云+社区人工智能专栏首发, 为原创翻译文章. 英语原文以引用方式给出 注释部分为译者为文中的相关概念注释 若手机显示不全, 请滑动屏幕 导读 201...

  • 区块链是未来吗? 或者它只是一种时尚?

    区块链行业和美国大淘金者的共同点 今天用加密货币发生的事情让人联想到90年代的网络泡沫时代。投资科技公司的人们以及更加连接未来的雄心勃勃的想法几乎在一夜之间赚取...

  • 【论文推荐】最新八篇主题模型相关论文—主题建模优化、变分推断、情绪强度、神经语言模型、搜索、社区聚合、主题建模的问题、光谱学习

    【导读】专知内容组整理了最近八篇主题模型(Topic Model)相关文章,为大家进行介绍,欢迎查看! 1. Application of Rényi and ...

  • 通过多摄像头域自适应进行无监督车辆计数(CS CV)