Hong Kong-based online broker Futu will halt services for opening or adding to positions and transferring funds into accounts for Chinese mainland investors from June 12, it said on Thursday, amid China’s regulatory crackdown on cross-border securities trading.
Brokerages Tiger and Longbridge released similar statements earlier this week.
Chinese regulators announced a crackdown on cross-border investment on May 22, targeting overseas firms and their local partners operating without approval.
The China Securities Regulatory Commission said on May 22 that it would penalise Futu, Tiger and Longbridge for conducting securities business services in China without regulatory approval or license and confiscate all their illegal gains.
The service halts are in line with regulators’ requirements for overseas institutions to wind down prohibited activities in a two-year grace period, during which customers would only be allowed to sell existing holdings and withdraw funds, with no new investments allowed.
Reuters
