Share
Copied
China's securities regulator on Friday requested online brokerages Futu Holdings and UP Fintech Holdings cease their unlawful securities businesses and banned them from getting new clients in the Chinese mainland.
The two brokerages had been offering offshore trading services to clients in the mainland without the necessary licenses and in violation of related regulations, the China Securities Regulatory Commission (CSRC) said in a statement.
The watchdog instructed the brokerages to take corrective measures, including refraining from soliciting new clients or opening new accounts in the mainland, the statement said.
Existing clients can continue trading on the platforms, but no new funds will be permitted to flow into these accounts if they violate China's regulations on foreign exchanges, the CSRC said.
The CSRC previously summoned executives from Futu and UP Fintech in November 2021, requesting that they regulate their cross-border securities businesses involving domestic investors, the statement said.
Both companies released statements on Friday, stating that they would cooperate with the CSRC and rectify their business practices accordingly.
Futu said it would actively communicate with regulators and identify compliant measures for providing cross-border securities services to onshore investors, while UP Fintech said that 90 percent of its new clients now come from markets outside the mainland.
(With input from Reuters; Cover photo via CFP)
Search Trends
SITEMAP
Copyright © 2023 CGTN. 京ICP备16065310号
Disinformation report hotline: 010-85061466
SITEMAP
Copyright © 2023 CGTN. 京ICP备16065310号
Disinformation report hotline: 010-85061466