China to Ban Over 1 Million ‘Fake’ Foreign Stock Investors
(Bloomberg) — China will ban more than one million mainland investors from trading onshore shares via the stock connect programs with Hong Kong, as authorities act on a new regulation to crack down on “fake foreign capital.”
Under the rules taking effect on July 25, domestic investors with Hong Kong accounts can no longer purchase A shares through the northbound trading links, according to the China Securities Regulatory Commission. Brokers in Hong Kong must stop giving new trading permits to mainlanders, while investors already in violation will be given a one-year grace period after which they are only allowed to sell the remaining shares.
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