Brokerage group Saxo Bank has shut its office in Shanghai according to an update in its latest half-year financial report.
The broker said it was restructuring its APAC division and that the closure was part of this process.
“To increase focus, strengthen compliance, reduce risk and enhance operational efficiency,
we are restructuring our distribution model in the APAC region,” the brokerage group said in a report.
Saxo Bank was the first foreign financial institution to receive regulatory approval from the two regulatory bodies operated by China’s central bank back in 2010.
The company’s ties to Geely, a Chinese car manufacturer which owns a large proportion of Saxo Bank, were expected to help smooth out expansion in the world’s second-largest economy.
However, China has proven to be an extremely difficult market to do business in over the years. Today a major problem is related to payments and banking, which have become very tough for brokers operating in the country to access.
Saxo is not the only company to shutter its operations in China. CMC Markets has also shut its office in Shanghai and no longer lists it on its website or financial statements.