The end of a regulatory grey zone: Why China is cracking down on offshore brokerages

SHENZHEN: When China unveiled its toughest crackdown yet on offshore trading platforms, Beijing-based investor Elaine Liang began exploring alternatives. “The first thing I worried about was whether the trading restrictions would come immediately,” said the 30-year-old finance industry researcher, who has used Hong Kong-based brokerage app Futu since studying in the city several years ago. Her dilemma is shared by many mainland Chinese investors following a sweeping campaign launched by the China Securities Regulatory Commission (CSRC) and seven other agencies on May 22.

The end of a regulatory grey zone: Why China is cracking down on offshore brokerages. SHENZHEN: When China unveiled its toughest crackdown yet on offshore trading platforms, Beijing-based investor Elaine Liang began exploring alternatives. “The first thing I worried about was whether the trading restrictions would come immediately,” said the 30-year-old finance industry researcher, who has used Hong Kong-based brokerage app Futu since studying in the city several years ago. Her dilemma is shared by many mainland Chinese investors following a sweeping campaign launched by the China Securities Regulatory Commission (CSRC) and seven other agencies on May 22. The crackdown targets offshore brokerage platforms including Futu, which owns online platform MooMoo, and other widely used overseas trading apps like Tiger Brokers and Longbridge - both...