China cracks down on illegal cross-border securities
China is penalizing brokers like Futu and Tiger for unauthorized cross-border trading. Investors have two years to wind down holdings as capital controls tighten.
Xurve View
Insights:
Xurve View
China is cracking down on illegal cross-border securities trading, targeting unlicensed brokers moving capital to foreign markets. Shares of UP FINTECH HOLDING LTD - ADR and FUTU HOLDINGS LTD-ADR plunged over 30% in United States premarket trade on May 22. The move intensifies Beijing's control over capital outflows and restricts mainland investors to selling existing offshore holdings only.
