Business entity data specialist Avox has signed a partnership agreement with financial information and media service provider Xinhua Finance to extend its reach into the Chinese market.
The agreement represents the first level of partnership with Xinhua Finance and involves an arrangement for the Chinese firm to distribute international business entity data to the local market.
Avox is in discussions with Xinhua Finance, which is headquartered in Shanghai, about further levels of partnership in the future, says CEO of Avox Ken Price. “China is taking the issue of data very seriously and there is a focus on getting the infrastructure right the first time around. The country is in a position to learn from mistakes made in other financial centres in the world and leapfrog unnecessary stages of development,” he explains.
A big driver for Chinese business and this focus on infrastructure and data is the development of the Qualified Domestic Institutional Investor (QDII) regime, Price adds. QDII allows investors to invest in foreign securities markets via certain fund management institutions, insurance companies, securities companies and other asset management institutions that have been approved by China Securities Regulatory Commission (CSRC).
The two firms are also setting up a research institute to focus on data content and Price believes the interest in this sort of research is proof positive that China is on the right track when it comes to data management.
A user group has been established to provide feedback to both firms, Price continues. Everbright Securities is part of this user group and is seriously talking about a future business relationship with Avox and Xinhua Finance.
Price describes Xinhua Finance as a “young and entrepreneurial” company and a perfect fit for Avox’s needs. “We see China as a great business opportunity for the future as it represents a significant growth market for financial services.”
The next six months will involve a focus on sales and marketing efforts, says Price.