Hong Kong banks have increased due diligence and raised thresholds for mainland Chinese clients seeking to open savings and investment accounts, responding to regulator demands and Beijing’s broader restrictions on cross-border financial activity since January 2023 [1, 2]. These accounts often serve as gateways for mainland investors to access overseas markets such as the Nasdaq, S&P 500, and shares in companies like SpaceX [1].

Beijing has ordered a review of suspicious accounts opened since January 2023. Banks must suspend transactions where necessary and complete these reviews within three months [1]. The China Securities Regulatory Commission fined three online brokers over US$330 million in May 2026 for operating without a license on the mainland, part of the wider crackdown on illegal cross-border trading and tax evasion [2].

Hong Kong regulators are requiring banks to implement new client declaration clauses. Clients must confirm that their funds originate outside mainland China [2]. Fund deposits, settlements, and withdrawals must also be conducted only through bank accounts in the client’s own name at approved banks under the new rules [2].

Some major Hong Kong banks have halted opening investment and wealth management accounts to mainland residents amid the tighter controls, though this has not been universal [2]. The Securities and Futures Commission in Hong Kong has ordered brokerages to audit client onboarding processes and close accounts with forged documents or dormant zero-balance accounts [2].

Yunnan-based auctioneer Zhe Ye said, "I really regret not opening a Hong Kong account earlier. Even though A shares have performed better this year, I still remain sceptical about the mainland market" [1]. This sentiment illustrates some mainland investors’ continued interest in accessing offshore markets despite tightening rules.

The crackdown follows a late 2022 directive ordering online brokerages to halt onboarding new onshore investors and rectify illegal conduct [2]. Mainland China limits foreign currency purchases to US$50,000 per person annually, encouraging some to seek offshore accounts to bypass restrictions [2].

Banks and brokerages face a three-month deadline to finish reviewing suspicious accounts and comply fully with the new declaration and verification requirements [1]. Authorities continue to scrutinize cross-border financial flows as part of efforts to curb illegal activity and boost tax compliance.