China Spares Existing Offshore Brokerage Accounts From Crackdown

(Bloomberg) — China’s securities watchdog said mainland investors who already have offshore trading accounts will be allowed to continue transactions while the regulator tightens oversight of illegal cross-border brokerage services.

The China Securities Regulatory Commission is moving to rectify brokerage services offered by offshore units of domestic securities firms that run afoul of the country’s capital controls, according to a statement issued Wednesday. The regulator said it won’t restrict transactions via existing offshore accounts, provided they comply with the government’s foreign exchange regulations.