China Expands Clampdown on Offshore Brokers Targeting Locals

(Bloomberg) — China told securities firms and their offshore units to stop conducting illicit cross-border business, including brokering shares and selling funds to domestic investors, in a bid to plug regulatory loopholes.

By Oct. 31, the overseas units must stop all marketing activities and promotions aimed at mainland investors and close all channels for opening new accounts, including onshore apps and websites, according to a notice from the China Securities Regulatory Commission (CSRC) that was seen by Bloomberg News. The CSRC didn’t immediately respond to a faxed request for a comment.