Huaxing Securities Joins Futu, Tiger in Restricting Mainland China Client Trades
Summary
- Huaxing Securities said it has announced a service reduction and service policy adjustment for clients in mainland China.
- Mainland China users will face limits on new investments under measures including a halt to new and additional purchases of all products, including stocks and a suspension of cash and securities deposit functions.
- The company said existing investors will still be able to sell held assets and carry out liquidation transactions, while withdrawal and asset transfer functions will remain in place, adding that client asset safety will not be affected.
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Huaxing Securities is scaling back services for clients in mainland China as Chinese authorities broaden a crackdown on offshore brokerages. The platform had offered overseas stock investment services to mainland investors alongside Futu, Tiger Brokers and Longbridge.
BlockBeats reported on June 6 that Huaxing Securities told clients in a notice issued the same day it will adjust service policies for mainland investor accounts starting June 15.
Under the notice, mainland China users will no longer be able to make new purchases or add to positions in any products, including stocks. They will only be able to sell and liquidate existing holdings. Cash and securities deposit functions will also be suspended, while withdrawals and asset transfers will remain available.
Huaxing Securities said the move is meant to comply with industry regulatory requirements tied to a two-year rectification period and to promote the healthy development of cross-border securities business. It added that overseas services for existing investors will continue and that the measure will not affect the safety of client assets.
The change means mainland China clients can continue to view, hold and sell existing assets, but they will face restrictions on new funding and new investments.
Uk Jin
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