UPDATE 1-China to crack down on illegal cross-border securities activities

Regulators said the crackdown ⁠was ​part of a broader effort to establish a long-term mechanism to safeguard financial market order and ⁠protect investor rights. The campaign was launched by eight government agencies including ⁠the ⁠China Securities Regulatory Commission, China's central bank and forex regulator.

​China on Friday launched ​a crackdown on cross-border ‌activities that ​illegally channel domestic money into overseas securities, futures and fund products.

China's securities ‌regulator also said it plans to impose penalties on online brokerages Tiger, Futu and Longbridge for soliciting business in ‌China without an onshore licence. Illegal securities activities violate ‌Chinese laws, disrupt market order, and hurt investors, the China Securities Regulatory Commission (CSRC) said in a statement.

The campaign targets overseas firms operating ⁠in ​China without approval ⁠and their domestic partners, setting a two-year grace period for them ⁠to wind down existing illegal operations. During this period, affected ​investors will only be allowed to sell existing holdings ⁠and withdraw funds, with no new investments allowed. Regulators said the crackdown ⁠was ​part of a broader effort to establish a long-term mechanism to safeguard financial market order and ⁠protect investor rights.

The campaign was launched by eight government agencies including ⁠the ⁠China Securities Regulatory Commission, China's central bank and forex regulator.