Last year, Mr. Wang from Beijing was still planning to open an account with a certain online brokerage to buy NVIDIA stock, but in July of this year, he discovered that the app no longer allowed new accounts to be opened. Customer service informed him that eight government departments had launched a joint crackdown on cross-border securities business, effectively blocking mainland residents from directly purchasing U.S. stocks through overseas brokerages.

Old Wang wasn't ready to accept this, so he asked me: "Will people from mainland China still be able to legally invest in U.S. stocks in 2026?" The answer is yes, but there are fewer options available, and each one has its own requirements.

Today, we’ll clearly explain the current compliant pathways for investing in U.S. stocks so that you can avoid crossing any regulatory red lines.

01

Direct account opening has been largely discontinued.

In May 2026, the China Securities Regulatory Commission (CSRC) and seven other government agencies jointly issued a plan to comprehensively crack down on illegal cross-border operations by overseas securities and futures firms. New account openings on platforms such as Futu, Tiger, and Changqiao in mainland China were suspended, and existing accounts entered a two-year transition period.

After May 22, 2028, these platforms’ domestic apps and websites will be completely shut down; existing accounts will only be able to sell assets or transfer funds out, but will not be able to make purchases or deposit funds.

This means that it has become very difficult to open an account with an overseas brokerage firm online using a mainland ID card and proof of address from the mainland.Some brokerage firms only accept clients who hold overseas permanent resident status or do not have a mainland ID card.

Some might ask, “Can I open an account in person at a bank branch in Hong Kong?” Theoretically, yes, but in practice, the barriers are very high. You need to have a Hong Kong bank card, and you must be able to prove that your funds come from legitimate overseas income; you cannot deposit funds directly using foreign exchange purchased in mainland China. Furthermore, the Hong Kong Monetary Authority and the Securities and Futures Commission are currently conducting strict scrutiny of accounts opened with mainland funds, and suspicious accounts may be restricted from trading or even frozen.

02

Compliance Path 1: QDII Funds

QDII funds are currently the safest and most compliant way for mainland residents to invest in the U.S. stock market. Funds operate within a closed loop in mainland China and are regulated by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.

You can purchase publicly offered mutual funds that track U.S. stock indices such as the S&P 500, the Nasdaq 100, and the Dow Jones Industrial Average through banks, brokerage firms, or fund companies. You don’t need to open an overseas account or exchange currency; you can buy them directly with renminbi.

The advantages are clear: compliance, convenience, and low barriers to entry.Many mutual funds allow you to start investing with as little as 100 yuan, making them suitable for most ordinary investors.

However, there are also drawbacks. First, the investment scope is limited, consisting mainly of index-based products, making it difficult to purchase individual stocks. Second, quotas are tight; when the market is booming, QDII quotas may run out, and funds may limit or even suspend subscriptions. Third, exchange rate fluctuations can affect the final return; when the renminbi appreciates, it can erode a portion of the gains from U.S. stocks.

For those who are only interested in long-term asset allocation and do not seek to pick individual stocks, QDII funds are a sufficient tool.

03

Compliance Pathway 2: Stock Connect

Hong Kong Stock Connect is another channel for compliant participation in overseas stock markets. Through a mainland brokerage account, investors can directly buy and sell Hong Kong stocks, with funds also remaining within a closed-loop system on the mainland.

Although the Hong Kong-U.S. Stock Connect program does not allow direct purchases of U.S. stocks, the Hong Kong stock market includes many Chinese ADRs, internet giants, biotech companies, and securities linked to U.S. dollar-denominated assets. For those who wish to allocate funds to overseas assets but prefer to avoid complex procedures, it serves as a compromise solution.

The eligibility requirement for the Hong Kong Stock Connect program is a minimum account balance of 500,000 RMB.Once activated, you can trade the constituent stocks of the Hang Seng Composite Large-Cap Index and Mid-Cap Index, as well as certain A+H shares.

Compared to QDII funds, the advantage of the Stock Connect program is that it allows investors to buy stocks, offering greater flexibility. The disadvantage is that the range of eligible securities is limited, and since the liquidity and valuation logic of Hong Kong stocks differ significantly from those of A-shares, a certain level of investment experience is required.

04

Other paths: Higher barriers to entry

In addition to QDII funds and the Stock Connect program, there are some niche investment channels, but the entry barriers for all of them are quite high.

Cross-Border Wealth Management Connect:Residents of the Guangdong-Hong Kong-Macao Greater Bay Area can allocate a portion of their assets to overseas investments through designated banking channels. However, the range of eligible investments is limited, and the Southbound Connect program has a minimum investment threshold of 1 million RMB.

Opening Accounts for Overseas Entities:Incorporate a company in Hong Kong or the United States and open a brokerage account in the company’s name. This approach is suitable for business owners with genuine overseas operations, but the costs, compliance requirements, and tax complexities are all quite high, making it unsuitable for the average individual.

Paths to Overseas Residency:Open an account using an overseas status, such as a Hong Kong ID or a U.S. green card. This approach is suitable for people who already have immigration or residency plans, but it is not a choice made solely for the purpose of stock trading.

We do not recommend getting involved in these gray-area practices, such as underground money transfers, nominee accounts, and cryptocurrency deposits.There is no guarantee of the safety of your funds, and you may also violate foreign exchange regulations.

05

Tax Compliance Should Not Be Overlooked

No matter how you invest in overseas assets, tax compliance is unavoidable. Chinese tax residents are required to file personal income tax returns on their worldwide income.

Capital gains from U.S. stocks are currently not subject to personal income tax in mainland China, but dividend income must be reported. Dividends and capital gains from Hong Kong stocks are also temporarily exempt from personal income tax, but this policy may change in the future.

More importantly, the exchange of CRS information has become routine as of 2026. Information on overseas brokerage and bank accounts will be automatically exchanged with China. If you fail to report accurately, the cost of late payment penalties and fines—should you be required to pay back taxes—will far exceed the tax amount itself.

When investing in overseas assets in 2026, compliance is the top priority.You can only sleep soundly if you configure things within the bounds of the law.

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