Tiger Brokers announced it will bar mainland China-based investors from adding new positions starting June 12, 2026, when these investors are physically located in mainland China [1, 2, 3]. On the same date, Futu will stop opening new accounts and adding new positions for mainland Chinese investors [1, 2, 4].
The restrictions come after Chinese regulators on May 22 announced a crackdown on cross-border securities trading, penalizing Tiger, Futu, and Longbridge for operating without regulatory approval [4]. On May 27, regulators introduced tighter rules requiring brokers to wind down illegal cross-border securities trading by a two-year deadline [1, 2, 3]. During this grace period, mainland investors can sell existing holdings and withdraw funds but cannot invest in new positions through these brokers [1, 2, 4].
Investors traveling offshore may continue to buy or sell securities from existing accounts, but new position additions are barred while physically in mainland China [1, 2, 3]. Futu has already stopped opening new accounts to mainland Chinese identity holders; such investors comprised 13% of its client base as of the end of the first quarter of 2026 [1, 2, 3].
Singapore's Monetary Authority of Singapore said the Singapore-licensed entities of Tiger, Futu, and Longbridge are financially independent from regulatory actions in Hong Kong and elsewhere but the regulator will monitor compliance [1].
The crackdown aims to prevent capital outflows and tighten oversight over cross-border capital flows originating in China [1, 5]. Senior equity advisor Vey-Sern Ling said, "The change may potentially reduce funds to ADRs listed in the U.S. Hong Kong listings may therefore become more attractive if the company is eligible for Stock Connect" [5]. Meanwhile, Theodore Shou, chief investment officer at Skybound Capital, said, "It should not have any material impact on foreign investors at all. The crackdown is unlikely to materially hurt trading volumes in Chinese ADRs" [5].
The effective date for the suspension of new positions and account openings for mainland Chinese investors physically in China is June 12, 2026 [1, 2, 3, 4].
