FINANCE

China Launches Two-Year Crackdown on Offshore Brokers Serving Mainland Investors

Published: May. 25, 2026 7:02 p.m. GMT+8

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China’s securities regulator has moved to shut offshore brokerage channels illegally serving Chinese mainland investors, as it escalates efforts to curb unlicensed cross-border trading activity.

The China Securities Regulatory Commission (CSRC) said Friday that it had opened investigations and issued prior notices of administrative penalties to Tiger Brokers (NZ) Ltd., Futu Securities International (Hong Kong) Ltd., Long Bridge HK Ltd. and their related entities for illegal securities business operations on the mainland.

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CSRC investigated Tiger Brokers, Futu Securities, and Long Bridge HK for unlicensed cross-border securities, futures, and fund operations on the mainland.
An eight-authority cleanup plan restricts existing mainland investors to sell orders and fund withdrawals only; buy orders and inflows are banned.
Hong Kong's SFC issued a circular requiring stricter controls for mainland investors opening new accounts.

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Who’s Who

Tiger Brokers (NZ) Ltd.: Tiger Brokers (NZ) Ltd. faces investigations and prior penalty notices from China’s CSRC for illegal securities operations on the mainland, including unlicensed marketing, order processing, futures brokerage, and fund distribution. It must cease buy orders and fund inflows for mainland clients during a two-year cleanup.

Futu Securities International (Hong Kong) Ltd.: Futu Securities International (Hong Kong) Ltd. was investigated by China's securities regulator for illegal securities business on the mainland, including unlicensed marketing and order-processing services, violating the Securities Law. It also engaged in illegal futures brokerage and mutual fund distribution, facing confiscation of gains and penalties.

Long Bridge HK Ltd.: Long Bridge HK Ltd. received prior notice of administrative penalties from the CSRC for conducting illegal securities business on the Chinese mainland without licenses. It provided marketing and order-processing services, violating the Securities Law. The regulator will confiscate illegal gains and impose penalties. It is part of a two-year cleanup targeting offshore brokerage channels.

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