China Cracks Down on Illegal Cross-Border Stock Trading, Douyin Removes Over 1,500 Related Videos

(Central News Agency, Taipei, June 9) After Chinese authorities announced a crackdown on illegal cross-border stock trading in late May, relevant agencies swiftly took action. According to Chinese media, the short video platform Douyin joined the crackdown at the request of the authorities, removing over 1,500 short videos related to illegal cross-border investment in the past two weeks. The content included tutorials on how to open Hong Kong bank accounts and securities accounts for Chinese users.

A responsible person from Douyin told Caijing Lianhe that the platform strictly prohibits content that 'induces illegal cross-border investment,' including but not limited to teaching or guiding the application for Hong Kong bank cards, opening Hong Kong securities accounts, and providing Hong Kong card application services without proper qualifications.

The Douyin representative stated that multiple Chinese government departments had previously issued rectification requirements for the chaotic phenomenon of illegal cross-border securities and futures operations. In the past two weeks, Douyin has dealt with over 1,500 related violating short videos. The platform will continue to strengthen content control and strictly clean up various types of illegal information, guiding investors to 'correctly view investment behavior.'

On May 22, eight departments including the China Securities Regulatory Commission (CSRC) jointly issued an 'Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Business Activities,' aiming to completely eliminate illegal cross-border securities trading by overseas securities firms within two years. During the rectification period, only one-way sell transactions are permitted. At the same time, three overseas securities firms—Tiger Brokers, Futu, and Changqiao—were accused of 'disrupting market order,' and their illegal income both domestically and abroad will be confiscated.

The announcement of this plan caused panic among many Chinese investors who have accounts with Hong Kong securities firms to trade Hong Kong stocks, US stocks, and other overseas stocks. It was widely seen as a move to strictly control capital outflows, drawing criticism of 'turning back the clock.'

In response to criticism, Reuters reported that the CSRC claimed the crackdown on overseas securities firms illegally assisting Chinese investors in purchasing overseas stocks aims to 'purify' China's capital market and combat illegal capital outflows, without affecting the overseas business of the relevant securities firms. Overseas securities firms can continue to provide legal overseas services to Chinese clients, and the safety of investors' assets will not be affected. Related accounts will not be forcibly closed, and account assets will not be forcibly sold.

The CSRC further claimed that Chinese assets are 'attractive' and welcomed both domestic and foreign investors to participate in China's capital market and share the 'dividends of China's high-quality economic growth.' (Editor: Qiu Guoqiang / Chen Yanjun) 1150609