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Chinese regulators have launched a coordinated crackdown on illegal cross‑border securities, futures and fund services, banning foreign firms from offering onshore account‑opening, trading or marketing and ordering a two‑year cleanup of existing illicit business. The CSRC and eight ministries also prohibit domestic platforms from facilitating overseas brokerage marketing or referral channels. Major fintech brokers are already reacting: Tiger Brokers disclosed mainland clients now comprise about 10% of assets and said it will bolster identity checks and fraud controls, while Longbridge pledged full remediation and compliance, highlighting custody arrangements and coordination with Hong Kong and US regulators. The drive raises compliance, operational and market‑access implications for brokers and platforms serving Chinese investors.
Regulators in China are tightening enforcement on cross-border securities activities, which affects brokers, trading platforms, and fintech firms that serve mainland clients or use mainland marketing channels. Tech teams must reassess compliance, data localization, access controls, and product features to avoid penalties and service disruptions.
Dossier last updated: 2026-06-01 20:42:37
Tiger Brokers (老虎国际) said mainland China client assets accounted for about 10% of its global assets as of Q1 2026, after the company halted new account openings for mainland-identified users in 2023 and stopped advertising and promotions there. The statement follows a new China regulatory notice from the CSRC and eight ministries clarifying rules on mainland investors’ cross-border securities, futures and fund activities; Tiger said it will comply and steadily advance related compliance work, strengthening account checks, identity verification and anti-fraud controls. The disclosure signals tighter regulatory scrutiny on cross-border retail brokerage services and the operational impact on fintech brokers serving Chinese clients.
Longbridge Securities (长桥证券) responded to the China Securities Regulatory Commission's (CSRC) investigation and proposed administrative penalties for its domestic and overseas entities, saying its licensed entities are also regulated by Hong Kong regulators. The firm emphasized client funds are fully segregated from operating funds and held in independent custodian bank accounts; U.S. and Hong Kong holdings are custodied by DTCC and HKSCC respectively and covered by Hong Kong's Investor Compensation Fund. Longbridge pledged to strictly implement remediation measures and to advance related arrangements lawfully and compliantly. The response matters for cross-border retail brokerage compliance and signals how brokers will align with tightened mainland–Hong Kong regulatory guidance.
China’s securities regulator and seven other ministries issued a joint implementation plan to crack down on illegal cross-border securities, futures and fund operations. The plan bars foreign institutions from offering account opening or trading services inside China in any form, establishes a two-year concentrated remediation period to clear illegal existing business, and emphasizes interagency, local-central and cross-border regulatory cooperation. Measures span securities, foreign-exchange, banking, internet supervision and criminal enforcement to expel illicit cross-border operators and bolster enforcement. The move tightens oversight of offshore platforms and intermediaries servicing Chinese clients and raises compliance and operational risks for fintechs, brokerages and payment providers handling cross-border capital flows.
China's securities regulator and seven other agencies issued a new enforcement plan to crack down on illegal cross-border securities, futures and fund operations. The plan bars foreign institutions from conducting marketing, opening accounts or operating trading services inside China, and forbids domestic internet platforms and self-media from providing marketing, account-opening channels, promotional push notifications or referral traffic for such overseas activities. Regulators will run a two-year cleanup of illegal existing business, strengthen cross-agency and cross-border cooperation (securities, FX, banking, cyberspace and criminal enforcement), and aim to expel illicit cross-border operators from the domestic market. This tightens compliance obligations for platforms and fintech firms.