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After Chinese regulators initiated a crackdown on unlicensed cross-border stock trading services for residents on the mainland, the cross-border securities firm announced it will cease its operations within China. Starting June 15, existing investors in mainland China will no longer be able to open new accounts, add to existing positions, or deposit funds and securities into their accounts from within the country. However, reductions in positions and transfers out of accounts will still be permitted.
Similar statements were issued earlier by several other financial technology companies after the China Securities Regulatory Commission revealed on May 22 that these firms were operating unlicensed businesses involving cross-border securities, funds, and futures. The regulators announced they would seize any illegal earnings and impose fines.
The commission granted a two-year grace period from May 2026 to May 2028, during which existing accounts in mainland China are only authorized to sell or transfer funds. Deposits and new purchases are strictly prohibited during this time. Once the grace period concludes, all accounts held by investors in the mainland will be closed, and the companies will fully withdraw from the local market.
The changes will apply specifically when account holders are physically present in China. Customer service representatives explained that if users travel to Hong Kong or abroad, their account functions will remain unaffected. For accounts opened by international clients, functions are restricted when they are in China but will be restored once they are overseas.
This means that regardless of whether accounts are registered under mainland or offshore clients, any trading or fund transfers initiated from within China will be impacted by these new restrictions.
The firm was established in Hong Kong by a major Chinese internet company, known for its social media platforms. In March 2024, it announced it would remove its app from app stores within mainland China, clarifying that existing customers in the region could continue using the app without interruption.
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