China bans cross-border stock trading; Hong Kong banks require declaration forms

Chinese regulators have strictly prohibited mainland residents from engaging in cross-border stock trading. According to reports, starting yesterday, clients opening investment accounts at Hong Kong banks must sign a 'Cross-border Disclosure Statement' to confirm that funds originate from legal sources outside mainland China. Existing clients face suspension of trading functions until the declaration is signed. The China Securities Regulatory Commission (CSRC) banned offshore brokers from providing trading services to mainland investors on the 22nd. CITIC Securities estimates that assets worth 200 to 250 billion HKD in the Hong Kong market could be affected.