Hong Kong Brokers Suspend Accounts of Mainland Users After Crackdown

(Bloomberg) — Hong Kong brokerages are starting to suspend accounts by Chinese mainland customers to comply with a ban issued late last year to halt an outflow of cash that runs afoul of the country’s strict capital controls.

Hong Kong-based Bright Smart Securities is suspending accounts held by mainland clients until further regulatory guidance is given, according to notice to clients that was seen by Bloomberg News. The Hong Kong unit of Chinese brokerage Guotai Junan Securities issued a similar circular, according to a report by the Securities Times, which later became unavailable online. Spokespeople at Guotai Junan didn’t immediately respond to a request for comment.