CSRC Orders Tiger Brokers, Futu, Longbridge to Shut Mainland Ops

Chinese regulators have ordered three offshore brokerages to shut down their mainland operations, effectively closing a major channel used by retail investors to trade overseas stocks. The China Securities Regulatory Commission (CSRC) announced on Friday that it is imposing penalties on Tiger Brokers, Futu Holdings, and Longbridge Securities for operating without proper licenses in China.

The regulator stated the firms violated securities laws by marketing, opening accounts, and processing trades for mainland Chinese clients without approval. Authorities plan to confiscate all illegal gains from the companies' domestic and overseas entities and impose additional financial penalties. The companies have the right to respond to the allegations and request hearings before final decisions are made.

A two-year transition period has been established. During this time, existing mainland clients of these platforms will only be allowed to sell their current holdings and withdraw funds. They will be prohibited from making new purchases or depositing additional money. After the transition window closes, the brokerages must fully shut down their mainland-facing websites, trading...