China Cracks Down on Illegal Cross-Border Operations of Offshore Brokerages

The China Securities Regulatory Commission (CSRC) and eight other departments issued a plan on the 22nd to rectify illegal cross-border securities and futures business activities. Firms like Futu and Tiger Brokers, which have about 800,000 mainland Chinese users, are targeted. During a two-year transition period, existing investors can only sell and withdraw funds; new purchases and deposits are prohibited. Futu faces a fine of approximately 1.85 billion RMB, while Tiger Brokers faces 410 million RMB. The Hong Kong SFC is also cooperating to tighten account opening requirements for mainland residents.