China Cracks Down on Illegal Cross-Border Operations of Offshore Brokerages
The China Securities Regulatory Commission and eight other departments announced a two-year crackdown on illegal cross-border brokerage activities, targeting firms like Futu and Tiger Brokers with heavy fines.
📋 Article Processing Timeline
- 📰 Published: May 23, 2026 at 15:22
- 🔍 Collected: May 23, 2026 at 15:31 (9 min after Published)
- 🤖 AI Analyzed: May 31, 2026 at 20:56 (197h 25m after Collected)
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.
FAQ
What happens to Futu and Tiger Brokers users?
During the 2-year transition, they can only sell and withdraw funds; new purchases are prohibited.