The document discusses plans for developing a China business focused on CFD and FX trading. Key points include: 1) CFD trading is allowed for regulated firms in China but there are no specific regulations for FX trading. 2) The Chinese market represents a major opportunity due to its large population, rapid economic growth, and the popularity of mobile internet access. 3) However, brokers can only set up representative offices and traders must transfer funds abroad due to the lack of regulation for FX/CFD trading locally. The business plan focuses on developing awareness, acquisition, and retention of Chinese traders through social media and mobile platforms.

1. China Business Development Plan
No specific regulations
But CFD trading is allow for regulated firms

3. Executive Summary
Context, idea and rationale
Objectives
Market Analysis
2
1
3
Competitor Analysis4

4. Why China?
 The retail financial market is becoming highly competitive and it’s becoming
more challenging to differentiate a brand based on product, feature or Price.
 The massive population and status as the world’s second largest economy
has been a prime market for many FX brokers in recent years. China is a
land of opportunity, where Kawase unlock their growth potential and capture
above average profit margin through Mobile trading terminal.
 China has the world’s largest Internet network following or net citizenry. It is
extensive all over the country. 90% people access the internet through
Mobile.
China internet finance rises, However, trading spot FX and CFDs is not
regulated nor licensed in China, therefore, brokers only set up representative
offices in China. Traders need to transfer the money abroad to the official
brokerage company with who trading is done and the local offices only offer
support and training.

5. Rational
The Chinese internet market expanded 6.2 per cent in 2016, gaining 43 million
internet users. Local players won the top spot in all main internet sector Baidu
(Search engin), QQ (IM)and Wechat enjoy a strong lead in their sector in
terms of market (Social media)
 China Internet finance rises, By the end of 2015, the overall market size of
China Internet finance has reached 12 to15 trillion RMB (nearly 20% of GDP),
and user numbers, at~500 million, have reached number one in the world.
(Moblie Trading)
Chinese traditionally favor very personal services from a known and trusted
source when making purchases. this would normally take the form of a bricks
and mortar presence and a face-to-face conversation, a dedicated account
manager via telephone is common (24 hours CS via Wechat/QQ ), Refer a
Friend program is needed.
 Chinese retail investors have been the key drivers of activity in the equities
markets, offering Chinese A Share price feed + Trading through a local broker

6. Business Plan
Awareness
Acquisition
 Wechat /QQ Strategy
 Online PR
 WeChat Content
 Sales Manual
Templates
 Mobile Search Campaign
 Web SEO/PPC
 Telesales Support
 WeChat/QQ
 Webinars
 24 hour Support
 CN Video Content
 Local Event Support
 Marketing Support
Sales Enablement
Growth/Retenti
 Banners
 Soft Content
 Whitepapers
 Campaign Support

7. Marketing Plan
Customer
Research
Choose Buy
Customer
Services
Refer
Friends
Awareness
•Direct website
•Baidu Search
•Weibo/Wechat Strategy
•Media Buy/Banners
•Articles/Review
•Retargeting Campaign
Product
•Multiple trading
•Easy registration
•Easy Depo.&With.
•Fast Execution
•Trading Tools
(algo&Mirror trading)
•Low spreasd&Com..
•Word of mouth
Promotion
•Free $100k USD
Demo account
•Demo trading
competition
•No Deposit Bonus
•Free 50 RMB by
Referring friends
Experiences
•Fast login APP
•Fast website loading
•Fast deposit &
withdraw
•Fast reply/ enquiry
•Fast Execution
•Trading Shares& CFDs
in one platform
•Share your experience
with a bonus/Win a
prize
Repeat purchase
•Increase clients LTV by
encouraging Social
Mirror trading
• Promoting C#
developing-Quant-
bots-auto trading
• Chinese Videos for
cMirrow/cAlgo/CTDN
•Translate the Top
Application /cbots into
Chinese
•Word of mouth
•Community Strategy
/Share/Review/Prize

8. Threat: Capital Control in China
• Chinese citizens are limited to exporting US$50,000 per person, per
year.
• 2017, the PBoC and the State Administration of Foreign Exchange
(SAFE) created additional rules to stop the outflow, banks are required
to report transfers over ¥200,000 (US$29,000), and you’re no longer
allowed to “lend” your allowance.
• the new rules strictly prohibit export of capital for buying bonds,
“insurance-type” products, and real estate.

9. Barging Power of buyers
• IB & Wealth manager
• Individual professional trader
• Institutional investors
• Key opinion leader (Analyst)
Bargaining Power of suppliers
•Financial Media/Portal
•Local payment processor
•App Stores
•Local Network/LP
•Social media platform
Threat of new Entrants
•Overseas brokers
•Local banks /Brokerage/Securities
•Insurance company
•Hong Kong Based Bullion broker
•Local Asset management company
•Local Social Trading Community
Threat of Substitute products
Fund ,stock , Insurance, structure Product,
Real state
Market Profitability

10. Non Financial/Bank entering the
FX/Financial business in China
Guo tai Jun an Securities 29th January ,2015
The first non banking company get FX licence from SAFE (Sate Administration of Foreign Exchange)
CITIC Securities 30th January,2015
Acquired 60% of the share in KVB Kunlun (FX Broker)
‘Stated Owned’ type, signify FX Trading is a potentional blue ocean for Foex Trading.
Ever bright Securities 2nd June, 2015
Everbright Securities bought 70% of the share from
HongKong Sun Hung Kai Financial with the ability to trade FX
Haier February 14, 2017
A subsidiary of leading Chinese home appliance company Haier Group, Haier Finance is a non-bank financial
institution that provides comprehensive financial services including deposits and loans, financial advisory,
insurance and investment services.
Haier Finance Co., Ltd has adopted Bloomberg’s Foreign Exchange electronic trading platform (FXGO) and
Multi-Asset Risk System (MARS) for Foreign Exchange trading and risk management.
HUAWEI September, 2016
Grand license from the SAFE, another non banking/financial institutional entering the forex Industry
Alibaba 2015
800 million RMB profit show in the balance Sheet from Forex trading in 2015

11. Trading environment in China Mainland
Micro economic stable,
china become largest market
of high-net-worth individuals
New grow up middle class
shows the grow of wealth
780 million activated
smartphone in China in 2015
Economic
TEP S
Gray area for FX Margin trading
, Legal Issue
Prevent risks from cross-border
capital flows
China’s regulator are
determined to build market
order and promote health
development of the internet
finance
the overarching ‘guideline’ has
been issued, and details laws
and regulations are to be
unveiled successively
Political
-Hungry for volatility
- Looking for Investment
opportunities with low capital
entry and high growth return
-Lack the professional know
how and experiences for
trading
- Mobile Stock Trading is
common in China
- many platforms fails to
perform due diligence
thoroughly and even forge
portfolios or establish illegal
capital pool
Social
-Infrastructure road blocks
(China’s Great FireWall)
- China Internet user totaled
731 million as of Dec 2016,
-Smartphone are the top
devices for internet access in --
China with 95% users
2/3 of the mobile connection
using 3G &4G network access
the internet
-2/3 of smartphone users now
paying by mobile
-Wechat CRM/payment
Technology

12. Taregt Market description
• Educated 25 + male
• Global mindset, but prefer his own language over english
• Educated, intelligent and sophisticated
• Adrenaline drive, risk taker & opportunity seeker- High Net Worth Individuals
• Stock /FX traders who wants to trade on the go, beginning, novice traders/
Experiences FX Traders, Stocker trader but new in FX.
12
New to trading New to FX/CFD Trading FX/CFD Trader
Level of Experience

13. Target Customers
Experience on FX/Margin Trading
MoneytoTrade
General Individual Trader
• These customer group have large
population
• Some of them are small IBs without
much trading experiences
• Those customer have potential to
grow up
Individual Professional Trader
-They care about the financial security and
data privacy
-They are conservative to use new tools, but
they are loyal to some platform if they get
benefits from them
-Easy to use and performance are critical to
them to make decision
IB and Wealth Manager
-They have experiences on most popular
tools
-They care about the profit and commission
that they can earn from each transaction
-They need to control the trading cost and
financial risk to their clients
New Rich (Tuhao)
- They have money, most likely from
the stock market
- They need to diversify the
investment to control the risk
- They have no patient to learn
complex technologies, easy to use
is critical for them

14. Political
An open, supportive regulatory environment
As early as in 2013, the People’s Bank of China explicitly expressed support for tech companies to promote Internet finance;
The regulators have not made the exact regulations clear on the status of margin FX as a tradable asset class for retail and
institutional investors.
At the same time, some unexposed risks and uncertainties attention, include costumer irrationality and fraudulent activity. due to
an increasing exposure to risks triggered by a growing number of financial products, China’s regulatory authorities are determined
to strength the management of internet finance, aiming at promoting the establishment of good market order and the health
development of the industry.
With the release of detailed laws and regulations and the increasing maturity/rationality of consumers, China’s internet finance
industry will inevitably embrace fiercer competition
14

15. What’s the tolerated by local
authorities and what is not?
 Can offer Services & Training to clients within
China
 Cannot accept clients fund within China
FX/Margin Trading in China
Establish an marketing office in China, based in Shenzhen
It’s a long term/regulated approach to start the business in China

16. Economic Growth

17. Internet Finance
17

18. China Internet Finance market
18

19. A highly developed internet/e-commerce business
Enormous demands for finance which are not satisfied
effectively yet

20. China Internet Finance market
20

21. Trading Technology
Infrastructure road blocks- the issues with online
connectivity in China.
The internet in China is censored by the
government and the “Great Firewall of China”
filters all traffic exchanged online with the outside
world, Due to the firewall, transmission in China
can be 100 times slower compared with transfers
in Europe
The Chinese list “performance” as a top priority
when deciding on a broker, so finding ways to
stabilize and speed up your network despite the
barrier is critical.

22. TARGET AUDIENCE
Traders/Investor Analysis

23. Kawase Target Audience
Step 1 – Potential clients
Step 3 – Long term clients
Step 2 – Fresh Start Clients
Professional Training Offer better user experiencesEasy/Convenient

24. General Individual trader based on experiences – New
to Trading
New to Trading
No trading experience,
stumbled upon the term
forex and taking his first step
Kawase will guide you in your
first steps to trading forex
- Personal account manager
- Education tools
- Professional platform
- Try before you trade-Demo

25. General Individual trader based on experiences – New to
forex
New to FX/CFD
No FX/CFD experiences,
Professionals engaged in
stocks, futures and other
financial investments
Explore new trading method
with Kawase
- Secure trading platform
- Many options of investment
- Personal account manager
- Market insight/news
- cMirror Social Trading

26. General Individual trader based on experiences – Forex
Trader
FX/CFD Trader
Successful trading comes
from Ultra-fast, execution,
fair & transparent trading
environment
- Algo trading
- Mirron Social trading
- Community
- Advances trading tools
- Market insight
- Technical & Fundamental
analysis

27. China High Net Worth Trading Behaviour
Self Director -28%
Seeks access to broad product
range
wants competitive pricing package
has high online usage and
financial expertise
Value constant accessibility of
services and fast execution
Participator-48%
Seeks good investment advise,
but wants final say on where
wealth is invested
Delegator-24%
Relies heavily on asset manager
Value performance more than any
there factor
Only limit interaction with relationship
manager but need transparent
reporting

28. Social Networks
Facebook WECHAT
Twitter WEIBO (Chinese Facebook +Twitter)
Youtube
Western ChinaVS
Youtube
Baidu Tieba/ Youku (Chinese Youtube)

29. 29

30. 30
Facts About WECHAT

31. 31
More than 95% of Internet users in China
access the Internet via mobile devices
about 80% use WeChat.
WeChat is not just for sending messages
and sharing news, pictures, and video;
It also offers online shopping, mobile
payments for everything from groceries to
Lunar New Year “red envelopes” (gifts of
cash), and Uber-like vehicle for hire
services.
More than 300,000 retail stores have
already integrated WeChat Payment into
their point-of-sale systems.

32. Key Objective to use WeBo
32
Branding and awareness
Builds community
Provides customer services
Direct sales opportunities
Research and collaborations

33. Mobile + Social

34. Payment

35. AliPay + WeChat Pay

36. 36
Wechat Red Envelop
money can be use for
Acquisition marketing campaign

37. Kawase Sales Funnel
Step 1 – Website/Social media
Step 3 – Sales Force
Step 2 – Search
PR prospect Full Registrations

38. Customer Conversion/Retention
0% 20% 40% 60% 80% 100%
Bonus
Services/Support Channel
Low Cost
Good Customers services
Varity product choices
Fast Services
Use friendly platform
Instant Suport
Series 1
Series 1

39. Thanks!
Lingmei Wu