Author: Martin
Recently, cross-border internet brokers Futu Securities and Tiger Brokers have further tightened the account opening restrictions for residents of mainland China. According to the latest regulatory requirements, both brokers have significantly raised the account opening thresholds, effectively closing the account opening channels for ordinary residents in mainland China.
The account opening conditions for Futu Securities have now changed. Currently, mainland Chinese customers must hold overseas permanent residency identification to open an account. Futu NiuNiu customer service stated that the company is undergoing a system upgrade, and at this stage, only customers with Hong Kong or Macau ID cards can open accounts; once the system upgrade is completed, customers will be able to use their mainland ID card along with overseas permanent residency identification to open accounts.
Tiger Brokers has also adjusted its account opening policy in line with the latest regulatory requirements. Since last week, the company no longer accepts account applications from mainland Chinese residents who provide overseas work or living-related proof documents. Currently, only customers holding non-mainland Chinese ID documents are accepted for account applications, which means that mainland residents without overseas permanent residency status can no longer open new accounts with these two brokers.
The account opening doors for cross-border internet brokers targeting mainland Chinese residents have further closed, and the tightening of investment channels for Hong Kong and U.S. stocks has become a recent focus of market attention.
Gradually Tightening Account Opening Conditions
This adjustment is not sudden. Futu Securities' previous account opening policy allowed only mainland customers who actually work or live abroad to open accounts, requiring both a valid mainland ID and relevant overseas work or living proof.
Tiger Brokers' previous policy required mainland customers residing abroad to provide valid proof documents of overseas work or living, such as local work visas, residence permits, or tax certificates.
From the rectification process, it can be seen that Futu Securities and Tiger Brokers have gradually tightened the account opening conditions for mainland residents, with core requirements shifting from proof of existing accounts with other overseas brokers to proof of overseas work or living, and finally to a complete closure recently.
Regulatory Background and Rectification Process
Since 2022, both brokers began closing the account opening channels for mainland residents at the request of regulatory authorities. In December 2022, the China Securities Regulatory Commission (CSRC) announced the promotion of rectification work for Futu Holdings and Tiger Brokers' illegal cross-border operations, proposing a rectification approach of "effectively curbing new growth and orderly resolving existing issues."
At that time, the CSRC pointed out that Futu Holdings and Tiger Brokers had conducted cross-border securities business targeting domestic investors without approval from the CSRC, and their actions constituted illegal securities business under the Securities Law and other relevant laws and regulations.
On October 15, 2021, the CSRC expressed its regulatory stance through the media; on November 11 of the same year, the CSRC held regulatory talks with executives of Futu Holdings and Tiger Brokers.
Similar Actions by Other Brokers
Not only Futu and Tiger Brokers, but other cross-border brokers have also taken similar actions. The world's largest internet broker, Interactive Brokers, has also gradually tightened its account opening channels for mainland residents since August, and its app has been removed from various app stores in mainland China.
Another overseas broker, Long Bridge Securities, announced in June that it would completely stop allowing users in mainland China to open accounts through existing proof methods, and its app is also no longer searchable or downloadable.
These adjustments indicate that regulatory agencies are comprehensively and deeply advancing the rectification of cross-border internet brokers targeting mainland residents.
Regular Channels for Investing in Hong Kong and U.S. Stocks
For mainland investors, regular channels for investing in Hong Kong stocks still exist. Currently, mainland investors can invest in Hong Kong stocks through the Stock Connect and Hong Kong stock ETFs listed in mainland China.
The core condition for applying for Stock Connect is that the average daily assets of the securities account and the funds account must not be less than 500,000 RMB in the 20 trading days prior to applying for the opening permission.
Investing through Hong Kong stock ETFs listed in mainland China has no capital threshold, making it more friendly for small and medium-sized retail investors. According to Wind data, the recent scale of Hong Kong stock ETF products has significantly increased, reflecting investors' strong interest in the Hong Kong stock market. Regarding whether the account opening threshold for mainland residents will be restored to previous requirements, Futu Securities customer service personnel stated that they have not received any related notifications.
As China's tax authorities intensify the enforcement of taxation on individuals' overseas income, many mainland residents investing in Hong Kong and U.S. stocks have received tax payment notices from local tax authorities since the second quarter of this year. The changes in investment channels remind mainland investors to always conduct overseas investments through compliant channels to ensure asset safety and legal compliance.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
