Investors rush to find ways to continue trading shares abroad, while regulation intensifies
Chinese investors are rushing to Hong Kong to open bank and brokerage accounts in person, looking for ways to continue trading shares overseas, as regulators step up oversight of cross-border investment activities.
The wave of in-person account openings comes as regulators in China and Hong Kong move to close loopholes and phase out unauthorized cross-border trading platforms over the next 2 years. The campaign is putting pressure on major online brokerages while creating opportunities for local Hong Kong businesses.
On Wednesday (June 3, 2026), crowds of visitors from China gathered in front of the branches of brokers Chief Securities and uSMART Securities at the West Kowloon high-speed train station in Hong Kong. Many carried only mainland Chinese identity cards; officials advised that they could still open valid accounts for trading in Hong Kong and US shares as long as they presented the necessary documents.
The rush came after coordinated regulatory action. On May 22, the China Securities Regulatory Commission and 7 other government agencies released a comprehensive rectification plan targeting illegal cross-border securities, futures and fund trading.
Almost simultaneously, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority updated rules for clients from China opening investment accounts in the city, reducing the gray zone around trading. offshore.
Beijing authorities aim to eliminate illegal cross-border online financial operations within 2 years. Customers from China who already have accounts on platforms offshore will be limited to selling assets and withdrawing funds, while websites, trading applications and local servers will be disabled.
Hong Kong’s updated guidelines, however, do not impose a blanket ban on Chinese residents opening accounts in person. Instead, licensed brokers and banks must carry out additional checks to confirm that clients’ investment funds come from legitimate sources outside of China. This change effectively moved the regulatory control point to the funding stage of the account opening process.
A Caixin has learned from sources familiar with the matter that online brokers Up Fintech, Futu and Long Bridge HK have stopped opening accounts for residents of China who only have Chinese identity cards. Up Fintech, operator of Tiger Brokers, announced that it will prevent users residing in China from opening new positions or increasing their investments from June 12th. Smaller brokers in Hong Kong see the restrictions imposed on their larger online competitors as a business opportunity.
In , Chinese investors must present a Chinese identity document, proof of entry into Hong Kong, a valid travel authorization for Hong Kong and Macau, and proof of an existing bank account in Hong Kong. uSMART Securities requires similar documents but allows clients to apply for a brokerage account while the Hong Kong bank account opening application is still being processed.
An industry source familiar with the process said local brokerages licensed in Hong Kong are not directly regulated by China’s securities regulator.
In theory, according to this source, companies do not violate Hong Kong rules when opening accounts for customers in China, as long as the customers sign written statements confirming that their investment funds come from legitimate offshore sources. Online registration tests at uSMART showed that this financing statement is part of the application process.
The rush is not limited to brokers. At a nearby branch inside the station, dozens of people lined up to open savings accounts, some planning to later use them to open trading accounts.
In Tsim Sha Tsui, insurance agents who normally promote insurance products have begun displaying posters offering free help with bank and brokerage account opening applications, claiming to have partnerships that can make the process easier for visitors from China.
Asked about the penalties and regulatory restrictions faced by Tiger Brokers, Futu and LongBridge, brokerage and insurance agent officials said these cases involved compliance issues specific to each company and would not affect other institutions serving mainland Chinese clients.
Industry experts warn, however, that the growth of the offline market carries legal and compliance risks. A Hong Kong private banker has stated that mainland Chinese investors who sign declarations about the offshore origin of their funds could face legal liability if authorities later discover that the money does not come from legitimate channels.
Residents of mainland China remain subject to strict capital controls, including an annual foreign exchange quota of US$50,000 per person. According to State Administration of Foreign Exchange regulations, this quota is intended for personal consumption and cannot be used for capital account transactions, including purchases of offshore real estate, life insurance or securities.
Since 2018, China has also exchanged tax information with Hong Kong under the Common Reporting Standard. While the main purpose of this framework is to combat offshore tax evasion, it also allows mainland Chinese tax authorities to access financial accounts held by mainland Chinese residents in Hong Kong.
This report was originally in English by Caixin Global on June 5, 2026. It was translated and republished by Poder360 under mutual content sharing agreement.
