Mainland China’s investors face new hurdles as Hong Kong brokers tighten rules
Tighter overseas investment rules are leading some investors to shift to mainland-approved channels as Hong Kong brokers restrict access
Shenzhen-based AI engineer Sihan Wang recently decided to liquidate all holdings in his Futu Securities account, which he opened a year ago, citing concerns that escalating regulatory oversight could restrict his ability to manage overseas investments.
“I would rather step back now than risk having my funds caught up in future restrictions,” Wang said. He is now considering shifting capital into mainland-listed gold products and mutual funds.
Wang’s move reflects a broader squeeze on mainland Chinese investors seeking exposure to overseas markets through Hong Kong, as authorities on both sides of the border tighten regulatory scrutiny of cross-border capital flows.
The latest notices came after Beijing’s wider campaign to curb unauthorised offshore investing, which last month saw the China Securities Regulatory Commission (CSRC), the People’s Bank of China, the Ministry of Public Security, and five other agencies pledge to crack down on unlicensed investment services targeting mainland clients.
In May, authorities fined Futu, Longbridge, and Tiger Brokers over US$330 million for conducting securities business in mainland China without the required licences. The firms were ordered into a two-year rectification process, which included winding down their mainland operations and gradually offboarding existing clients.