CSRC orders Futu, Tiger Brokers to stop letting new onshore traders tap global stocks
- Futu and Tiger Brokers’ operator UP Fintech Holding must stop accepting new customers based in mainland China, the CSRC said
- Existing customers may continue trading on the platforms without adding fresh capital, the regulator said
China’s securities regulator ordered Futu Holdings and Tiger Brokers to stop giving new onshore traders access to global equities, taking the strongest action yet to bar the two online brokerages from breaching the country’s capital controls.
The two online brokers had allowed China-based investors to transact in offshore equities “for the past few years,” and were deemed to have operated illegally, the regulator said, adding that it spoke to Futu and Tiger Brokers on November 11, 2021 about their operations.
A UP Fintech representative said in an emailed statement on Friday that the company “will continuously offer legitimate services to existing onshore customers in mainland China. While actively cooperating with the regulators, the company will take corrective measures to stop enrolling new onshore customers.” The company also confirmed that its global business outside mainland China will not be impacted.
Futu said in a Friday statement on its website that it will proactively seek guidance from, and cooperate with, the CSRC in connection with its efforts to ensure legal compliance of its business activities in mainland China, and continue to provide services to existing clients in China.
Futu postponed a dual listing today in Hong Kong, where it was due to allow its US-listed stock to be traded on the city’s exchange by introduction, citing the need to “clarify certain matters” with the bourse.