Abstract:Hong Kong-listed brokerages slumped after state media reported that Guotai Junan International had banned account opening by mainland Chinese customers, possibly affecting its operations.
SHANGHAI (Reuters) - On Monday, Hong Kong-listed brokerages slumped after state media reported that Guotai Junan International had banned account opening by mainland Chinese customers, possibly affecting its operations.
According to a source at Guotai Junan International's parent company in Shanghai, the action was prompted by unwritten “window instructions” from China's securities authorities intended at deterring unlawful money outflows.On December 30, the China Securities Regulatory Commission (CSRC) prohibited Futu Holding and UP Fintech Holding from seeking new business from mainland investors.
According to the Guotai Junan source, since Mainland investors are a significant source of income for Hong Kong-based brokerages, the prohibition would have a detrimental effect on future business.
Guotai Junan did not immediately respond to a request for comment from Reuters.
On Monday, Guotai Junan's Hong Kong-listed shares declined around 0.6%. Guolian Securities fell over 3%, while Haitong International was down 1.1%.
Mainland Chinese may purchase foreign assets via official channels such as the QDII cross-border investment scheme and the Stock Connect program.
Many Chinese, however, register stock trading accounts in Hong Kong, possibly circumventing China's rigorous money controls.
According to the CSRC, Futu and UP Fintech Hong Kong engaged in cross-border securities transactions involving domestic investors without obtaining regulatory approval, in violation of Chinese legislation.
Stay tuned for more Forex news.
Install the WikiFX App on your smartphone to stay updated on the latest news.
Download link: https://www.wikifx.com/en/download.html?source=fma3
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The Australian Securities and Investments Commission (ASIC) has flagged a concerning trend in financial fraud, cautioning investors about a sophisticated scam targeting bonds and term deposits.
Interactive Brokers expands its product suite with Daily Options on the CAC 40 index, providing investors with more tools for short-term trading strategies.
In a cautionary tale that reverberates through the digital trading landscape, Moideen, found himself ensnared in the web of deception spun by Spring FX Signals.
In a distressing account reminiscent of online trading nightmares, Govindaraj.M, a 43-year-old resident of India, fell victim to the dubious practices of the Capitalix brokerage platform.