China penalizes Tiger Brokers, Futu, Long Bridge for illegal cross-border trading

The China Securities Regulatory Commission (CSRC) has taken action against Tiger Brokers, Futu Securities International, and Long Bridge Securities for unlawfully providing domestic investors with access to foreign securities trading. Announced on Friday, the CSRC revealed that these three firms would have their illicit earnings confiscated and face additional penalties. They engaged in promoting securities trading and processing orders within mainland China without the necessary regulatory approval, breaching the Securities Law. The CSRC emphasized that such unauthorized cross-border activities disturb market order and necessitate a stringent response. This initiative is part of a wider campaign to regulate China's capital market, where domestic investors typically can only purchase overseas securities through official avenues like the Stock Connect scheme with Hong Kong. The enforcement comes as demand for foreign stocks rises, fueled by robust US tech earnings and reduced tensions in the Middle East.