It doesn't surprise me that OFX is acquiring a Canadian business because a lucrative segment according to their Investor Presentation is the "High Value Consumer" segment and property related transactions.
During 2020, the Daigou market disappeared (locals getting money from Bank of China and sending baby formula back for example) which impacted all forex operators. But property looks like it is becoming more important now.
Real Estate here and in Canada is really the Wild West. Who knows where the overseas money comes from. And sometimes it is just sent to a relative as a family "gift", which is then used to purchase property, who remit the rent funds back. A lot of clean up is needed in this space and lawmakers are on it.
So OFX need to clearly point out what the impact to their business would be if the government increased regulation on property transactions here and in Canada. Investors need to know that.
OFX Price at posting:
$2.40 Sentiment: None Disclosure: Not Held
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