As published on finews.asia, Monday 13 February, 2023.
One month after bans on online brokerage platforms, traditional brokerage houses are also reportedly being affected from Beijing’s crackdown on cross-border activities.
Hong Kong-based Bright Smart Securities and the local unit of Chinese brokerage Guotai Junan Securities issued circulars to suspend accounts held by mainland Chinese clients until further regulatory guidance is provided, according to a Bloomberg report citing multiple sources.
This marks the latest regulatory development following a directive to online platforms Futu and Up Fintech – or Tiger Brokeres - to stop onboarding new onshore clients from mainland China. For Futu, this not only caused pressure on its share price but also led to a delayed listing in Hong Kong.
In December 2022, Beijing pledged to ramp up efforts in regulating cross-border securities activities.