Hong Kong Banks in China Mainland Suspends Account Opening for Investments, 1) Bank of East Asia Shanghai Branch Suspends Account Opening, 2) HSBC Issues Notice of All Funds in Investment Accounts Must Comply with Regulations
5th June 2026 | Hong Kong
Hong Kong banks in China Mainland has suspended account opening for investments – 1) Bank of East Asia Shanghai branch suspends account opening, and 2) HSBC issues notice of all funds in investment accounts must comply with regulations. In 2026 June, Tiger Brokers will stop deposits & buy trades (Effective 12/6/26) for China Mainland accounts, and only allows withdrawals, sell trades & account closures. China Securities Regulatory Commission (CSRC) has give a 2-year grace period to allow sell trades & outgoing transfers for 3 brokerages in China Mainland (Tiger Brokers, Futu Securities & Longbridge). In 2026 June, China Securities Regulatory Commission (CSRC) issued Tiger Brokers parent UP Fintech with $59.7 million fine & illegal profit confiscation for conducting businesses in China Mainland without regulatory licence. UP Fintech reports $26.9 million net loss for 2026 Q1. Announcement (2/6/26): “Recently on May 22, the Beijing Bureau of the China Securities Regulatory Commission (CSRC) issued administrative penalties and ordered the confiscation of illegal gains against certain subsidiaries of the Company, with a total amount of approximately RMB 411 million (equivalent to roughly $59.7 million). The penalties stemmed from certain subsidiaries’ unlicensed cross-border securities business and illegal activities relating to the fund and futures business in mainland China. The Company sincerely accepts the penalty and has recognized it as a subsequent significant event for the first quarter. Considering the Company’s overall profitability and cash flow position, this one-off expense will not have a material adverse impact on our business operations or long-term development.” In 2026 May, China Securities Regulatory Commission (CSRC) announced plan to issue a $271 million fine on Hong Kong-based Futu Securities & $183,575 fine on founder & CEO Leaf Li Hua for conducting businesses in China Mainland without regulatory licence (Securities, public fund sales & futures). Futu Securities funded accounts from China Mainland represents 13% of Futu Securities total funded accounts. Futu Holdings current market value at $12.6 billion, share price -33.2% last 5 days, – 49.7% YTD, -16% last 12 months & -36.9% last 5 years. Futu Holdings was founded in 2007 by ex-Tencent executive Leaf Li Hua. In 2026 May, China Securities Regulatory Commission (CSRC) announced to penalize online brokerages Tiger Brokers, Futu Securities & Longbridge for soliciting business in China without onshore licence. Non-licenced firms will have to forfeit illegal profit, and firms are given 2-year grace period to wind down illegal activities (Clients only allowed to sell existing holdings or withdraw funds). CSRC (25/25/26): “The China Securities Regulatory Commission (CSRC) announced on Friday that it will resolutely crack down on Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited and Longbridge Securities (Hong Kong) Limited for illegal cross-border business operations. The CSRC stated that the activities of these brokerages have violated China’s laws and regulations concerning securities, funds and futures, and have disrupted market order. In accordance with relevant regulations, the regulator plans to confiscate all illegal gains from the associated domestic and overseas entities of Tiger, Futu and Longbridge, while also imposing severe penalties in keeping with the law.” In 2025 September, Futu Securities Securities & Tiger Brokers Brokers implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
“ Hong Kong Banks in China Mainland Suspends Account Opening for Investments, 1) Bank of East Asia Shanghai Branch Suspends Account Opening, 2) HSBC Issues Notice of All Funds in Investment Accounts Must Comply with Regulations “
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Tiger Brokers to Stop Deposits & Buy Trades (Effective 12/6/26) for China Mainland Accounts, Only Allows Withdrawals, Sell Trades & Account Closures, 2-Year Grace Period Given to Allow Sell Trades & Outgoing Transfers for 3 Brokerages in China Mainland (Tiger Brokers, Futu Securities & Longbridge)
4th June 2026 – Tiger Brokers will stop deposits & buy trades (Effective 12/6/26) for China Mainland accounts, and only allows withdrawals, sell trades & account closures. China Securities Regulatory Commission (CSRC) has give a 2-year grace period to allow sell trades & outgoing transfers for 3 brokerages in China Mainland (Tiger Brokers, Futu Securities & Longbridge). In 2026 June, China Securities Regulatory Commission (CSRC) issued Tiger Brokers parent UP Fintech with $59.7 million fine & illegal profit confiscation for conducting businesses in China Mainland without regulatory licence. UP Fintech reports $26.9 million net loss for 2026 Q1. Announcement (2/6/26): “Recently on May 22, the Beijing Bureau of the China Securities Regulatory Commission (CSRC) issued administrative penalties and ordered the confiscation of illegal gains against certain subsidiaries of the Company, with a total amount of approximately RMB 411 million (equivalent to roughly $59.7 million). The penalties stemmed from certain subsidiaries’ unlicensed cross-border securities business and illegal activities relating to the fund and futures business in mainland China. The Company sincerely accepts the penalty and has recognized it as a subsequent significant event for the first quarter. Considering the Company’s overall profitability and cash flow position, this one-off expense will not have a material adverse impact on our business operations or long-term development.” In 2026 May, China Securities Regulatory Commission (CSRC) announced plan to issue a $271 million fine on Hong Kong-based Futu Securities & $183,575 fine on founder & CEO Leaf Li Hua for conducting businesses in China Mainland without regulatory licence (Securities, public fund sales & futures). Futu Securities funded accounts from China Mainland represents 13% of Futu Securities total funded accounts. Futu Holdings current market value at $12.6 billion, share price -33.2% last 5 days, – 49.7% YTD, -16% last 12 months & -36.9% last 5 years. Futu Holdings was founded in 2007 by ex-Tencent executive Leaf Li Hua. In 2026 May, China Securities Regulatory Commission (CSRC) announced to penalize online brokerages Tiger Brokers, Futu Securities & Longbridge for soliciting business in China without onshore licence. Non-licenced firms will have to forfeit illegal profit, and firms are given 2-year grace period to wind down illegal activities (Clients only allowed to sell existing holdings or withdraw funds). CSRC (25/25/26): “The China Securities Regulatory Commission (CSRC) announced on Friday that it will resolutely crack down on Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited and Longbridge Securities (Hong Kong) Limited for illegal cross-border business operations. The CSRC stated that the activities of these brokerages have violated China’s laws and regulations concerning securities, funds and futures, and have disrupted market order. In accordance with relevant regulations, the regulator plans to confiscate all illegal gains from the associated domestic and overseas entities of Tiger, Futu and Longbridge, while also imposing severe penalties in keeping with the law.” In 2025 September, Futu Securities Securities & Tiger Brokers Brokers implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
China Securities Regulatory Commission (CSRC) Issues Tiger Brokers Parent UP Fintech with $59.7 Million Fine & Illegal Profit Confiscation for Conducting Businesses in China Mainland Without Regulatory Licence, UP Fintech Reports $26.9 Million Net Loss for 2026 Q1
3rd June 2026 – China Securities Regulatory Commission (CSRC) has issued Tiger Brokers parent UP Fintech with $59.7 million fine & illegal profit confiscation for conducting businesses in China Mainland without regulatory licence. UP Fintech reports $26.9 million net loss for 2026 Q1. Announcement (2/6/26): “Recently on May 22, the Beijing Bureau of the China Securities Regulatory Commission (CSRC) issued administrative penalties and ordered the confiscation of illegal gains against certain subsidiaries of the Company, with a total amount of approximately RMB 411 million (equivalent to roughly $59.7 million). The penalties stemmed from certain subsidiaries’ unlicensed cross-border securities business and illegal activities relating to the fund and futures business in mainland China. The Company sincerely accepts the penalty and has recognized it as a subsequent significant event for the first quarter. Considering the Company’s overall profitability and cash flow position, this one-off expense will not have a material adverse impact on our business operations or long-term development.” In 2026 May, China Securities Regulatory Commission (CSRC) announced plan to issue a $271 million fine on Hong Kong-based Futu Securities & $183,575 fine on founder & CEO Leaf Li Hua for conducting businesses in China Mainland without regulatory licence (Securities, public fund sales & futures). Futu Securities funded accounts from China Mainland represents 13% of Futu Securities total funded accounts. Futu Holdings current market value at $12.6 billion, share price -33.2% last 5 days, – 49.7% YTD, -16% last 12 months & -36.9% last 5 years. Futu Holdings was founded in 2007 by ex-Tencent executive Leaf Li Hua. In 2026 May, China Securities Regulatory Commission (CSRC) announced to penalize online brokerages Tiger Brokers, Futu Securities & Longbridge for soliciting business in China without onshore licence. Non-licenced firms will have to forfeit illegal profit, and firms are given 2-year grace period to wind down illegal activities (Clients only allowed to sell existing holdings or withdraw funds). CSRC (25/25/26): “The China Securities Regulatory Commission (CSRC) announced on Friday that it will resolutely crack down on Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited and Longbridge Securities (Hong Kong) Limited for illegal cross-border business operations. The CSRC stated that the activities of these brokerages have violated China’s laws and regulations concerning securities, funds and futures, and have disrupted market order. In accordance with relevant regulations, the regulator plans to confiscate all illegal gains from the associated domestic and overseas entities of Tiger, Futu and Longbridge, while also imposing severe penalties in keeping with the law.” In 2025 September, Futu Securities Securities & Tiger Brokers Brokers implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
China Securities Regulatory Commission (CSRC) to Issue $271 Million Fine on Hong Kong-Based Futu Securities & $183,575 Fine on Founder & CEO Leaf Li Hua for Conducting Businesses in China Mainland Without Regulatory Licence (Securities, Public Fund Sales & Futures), Funded Accounts from China Mainland Represents 13% of Futu Securities Total Funded Accounts, Futu Holdings Current Market Value at $12.6 Billion, Share Price -33.2% Last 5 Days, – 49.7% YTD, -16% Last 12 Months & -36.9% Last 5 Years, Founded in 2007 by ex-Tencent Executive Leaf Li Hua
26th May 2026 – China Securities Regulatory Commission (CSRC) has announced plan to issue a $271 million fine on Hong Kong-based Futu Securities & $183,575 fine on founder & CEO Leaf Li Hua for conducting businesses in China Mainland without regulatory licence (Securities, public fund sales & futures). Futu Securities funded accounts from China Mainland represents 13% of Futu Securities total funded accounts. Futu Holdings current market value at $12.6 billion, share price -33.2% last 5 days, – 49.7% YTD, -16% last 12 months & -36.9% last 5 years. Futu Holdings was founded in 2007 by ex-Tencent executive Leaf Li Hua. Announcement (22/5/26): “Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: Futu), today announced that the Company received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission and its Shenzhen bureau (collectively the “CSRC”) in connection with the Company’s operations in mainland China. The CSRC states that certain Futu entities in mainland China and Hong Kong (the “Related Companies”), without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China, in violation of the Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law of the People’s Republic of China. The CSRC proposes to order the Related Companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB1.85 billion (approximately USD271 million). In addition, the CSRC proposes to impose a personal fine of RMB1.25 million (approximately USD 183,575) on Mr. LI Hua, the founder and CEO of the Company. The proposed penalty remains subject to further proceedings and the final determination by the CSRC. The Company is entitled to submit statements, present defenses, and request a hearing. The Company will fully cooperate with the CSRC and exercise its lawful rights to safeguard the legitimate interests of the Company and its shareholders. The Company has maintained ongoing communication with the CSRC and implemented rectification measures in relation to its mainland China operations. As of the end of the first quarter of 2026, funded accounts from mainland China accounted for approximately 13% of the Company’s total funded accounts. Meanwhile, as the Company continues to scale across international markets, the number of overseas funded accounts has continued to grow steadily. Business operations in all regions outside of mainland China remain normal.” In 2026 May, China Securities Regulatory Commission (CSRC) announced to penalize online brokerages Tiger Brokers, Futu Securities & Longbridge for soliciting business in China without onshore licence. Non-licenced firms will have to forfeit illegal profit, and firms are given 2-year grace period to wind down illegal activities (Clients only allowed to sell existing holdings or withdraw funds). CSRC (25/25/26): “The China Securities Regulatory Commission (CSRC) announced on Friday that it will resolutely crack down on Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited and Longbridge Securities (Hong Kong) Limited for illegal cross-border business operations. The CSRC stated that the activities of these brokerages have violated China’s laws and regulations concerning securities, funds and futures, and have disrupted market order. In accordance with relevant regulations, the regulator plans to confiscate all illegal gains from the associated domestic and overseas entities of Tiger, Futu and Longbridge, while also imposing severe penalties in keeping with the law.” In 2025 September, Futu Securities Securities & Tiger Brokers Brokers implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
Futu Holdings Limited – Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and Moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services.
China Securities Regulatory Commission (CSRC) to Penalize Online Brokerages Tiger Brokers, Futu Securities & Longbridge for Soliciting Business in China Without Onshore Licence, Non-Licenced Firms Will Have to Forfeit Illegal Profit, Firms Given 2-Year Grace Period to Wind Down Illegal Activities (Clients Only Allowed to Sell Existing Holdings or Withdraw Funds)
23rd May 2026 – China Securities Regulatory Commission (CSRC) have announced to penalize online brokerages Tiger Brokers, Futu Securities & Longbridge for soliciting business in China without onshore licence. Non-licenced firms will have to forfeit illegal profit, and firms are given 2-year grace period to wind down illegal activities (Clients only allowed to sell existing holdings or withdraw funds). In 2025 September, Futu Securities Securities & Tiger Brokers Brokers implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
Futu Securities & Tiger Brokers Implement New Account Opening Procedures in China Requiring Proof of Non-China Mainland Identification & Overseas Permanent Residency, United States Interactive Brokers Removes Mobile App from App Stores in China & Implemented New Account Opening Procedure in China Requiring China Mainland Identification & Proof of Overseas Residency & Employment, China Sent Notices to Citizens Investing in Hong Kong & United States Stocks to Declare Offshore Personal Income Including from Investments, Dividends & Stock Options
25th September – Futu Securities & Tiger Brokers have implemented new account opening procedures in China requiring proof of non-China Mainland identification & overseas permanent residency. In 2025 September, United States Interactive Brokers removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law.
United States Interactive Brokers Removes Mobile App from App Stores in China & Implements New Account Opening Procedure in China Requiring China Mainland Identification & Proof of Overseas Residency & Employment, China Sent Notices to Citizens Investing in Hong Kong & United States Stocks to Declare Offshore Personal Income Including from Investments, Dividends & Stock Options
11th September – United States Interactive Brokers has removed its mobile app from app stores in China, and implemented new account opening procedure in China requiring China Mainland identification & proof of overseas residency & employment. In 2025 July, China was reported to have started sending notices to citizens investing in Hong Kong & United States stocks to declare their offshore personal income including from investments, dividends & stock options. In 2025 June, China was reported to be targeting collection of China citizens offshore personal income tax including from investments, dividends & stock options. In 2024 October, China was reported to have started enforcing tax on overseas investment gains for wealthy individuals including conducting self-assessments. Individuals are facing up to 20% tax on overseas investment gains but the amount is negotiable. China tax law states China residents are subject to tax worldwide, which is similar to United States tax law. In 2025 August, Interactive Brokers announced the launch of zero-commission & no settlement fee IBKR Lite pricing plan in Singapore for investors to trade United States stocks & ETFs. IBKR Lite charges fixed pricing for non-United States stocks & ETFs, fixed pricing for all options, futures & mutuals funds, and tiered pricing for currencies & bonds. Auto FX conversion is at 9 bps. In 2020, Interactive Brokers opened a new entity in Singapore to serve active traders, wealth managers, family offices and hedge funds.
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