Mr. Chen, an export business executive in Shenzhen, opened a Hong Kong stock account with Futu back in 2021, where he still holds over 100,000 Hong Kong dollars’ worth of Tencent and Meituan shares. In June of this year, when he opened the app to increase his position, he received a cold, impersonal message: “Account functions are restricted; you cannot make purchases at this time.”

Mr. Chen is not an isolated case. On May 22, 2026, the China Securities Regulatory Commission (CSRC) and seven other agencies jointly issued the “Implementation Plan for the Comprehensive Crackdown on Illegal Cross-Border Securities, Futures, and Fund Operations,” and cases were filed against Futu, Tiger, and Changqiao simultaneously. A two-year crackdown is now affecting everyone in mainland China who trades Hong Kong and U.S. stocks.

01

What Has a Single Rectification Order Changed?

The biggest difference between this round and previous ones is the shift from ”curbing new cases” to ”mandatory clearance of existing cases.” The plan issued on May 22, 2026, proposed for the first timeTwo-Year Intensive Rectification Period:Until May 2028, foreign brokerages operating in China will only be allowed to ”sell and transfer funds out” domestically; they will not be permitted to buy or transfer new funds in.

Starting June 12, Futu, Tiger, and Changqiao have successively implemented the following measures: Domestic services have suspended buying and adding to positions for all products, including stocks, allowing only selling and closing out positions; fund transfers have also been suspended for incoming transfers, while outgoing transfers remain normal. In other words,”Your existing account” is "all out, no in", It's no longer possible to add money to it.

The impact on the market is actually limited. According to data from Jieli Financial Cloud, these three firms’ combined market share of total trading volume in March 2026 was approximately 4.5%; by the end of the first quarter of 2026, the proportion of clients with mainland assets at Futu had fallen to 13%, while at Tiger it was approximately 10%. The withdrawal of these firms has had little impact on the liquidity of the Hong Kong stock market, but for individual investors, their room to maneuver has been tangibly restricted.

02

The Truth Behind ”Existing Accounts: Outflows Only”

Many people are concerned: Will their accounts be closed immediately? The answer is no. The rectification plan clearly states that,No forced account closures—just an orderly phase-out. During the transition period, you can sell your holdings and transfer the funds back to the mainland at any time; your principal and returns will remain safe and unaffected.

But there is a crucial difference here. An investigation by The Paper found that the statuses of two accounts held by the same investor on the Futu app were completely different: the account provided by Futu Securities (Hong Kong) was partially restricted from making purchases due to a circular issued by the Hong Kong Securities and Futures Commission on May 22; whereas the account provided byMoomoo Financial, a U.S.-licensed institution (SEC-registered)Accounts that are receiving the service can still place orders as usual.

In other words, depending on the jurisdiction where the account was opened, the outcome can be completely different. This is why some people have their ”accounts locked” while others can ”trade as usual”—the difference lies in the entity that opened the account, not in whether you are from mainland China.

03

How to Choose Among the Three Compliance Options

If you want to continue investing in Hong Kong and U.S. stocks legally, there are currently three options. The first isStock Connect, QDII, and Cross-Border Wealth Management ConnectWait for a licensed channel—this is a legitimate channel explicitly protected by the plan, but its drawbacks include limitations on the scope of investment targets and the investment amount.

Article 2 isOpen an Account Through a Licensed Broker in Hong Kong. At the same time, the Hong Kong Securities and Futures Commission (SFC) has tightened the rules for mainland clients opening accounts: they must travel to Hong Kong in person for an interview, sign a mandatory declaration of funds’ source, and link a local Hong Kong bank account for settlement. The core principle is that account services are prioritized for those living, working, or studying in Hong Kong.

Article 3: If you have already obtainedHong Kong Non-Permanent Resident Identity Card(For example, through the Quality Migrant Admission Scheme, the High-Talent Pass, or further education), once you update your overseas status on Futu, there will be no restrictions on account trading or fund deposits and withdrawals. One user obtained Hong Kong non-permanent resident status this past March; their application was approved and trading resumed that same afternoon after they uploaded the required documents.

In other words,A Hong Kong ID and a Hong Kong bank card are shifting from being a ”nice-to-have” to a ”compliance necessity.”. This is much more reliable than opening an account through a random broker.

04

Linking a Hong Kong card is a low-level operation.

No matter which path you take, a Hong Kong bank card is an essential piece of infrastructure you simply cannot do without. For deposits and withdrawals with licensed Hong Kong brokerages—other than those made through the Stock Connect program—you are required to link a local Hong Kong bank account; without a Hong Kong bank card, moving funds in and out is a dead end.

In January 2026, the Hong Kong Monetary Authority clarified that applicants holding visas for tourism, family visits, or business may submit applications to open bank accounts. Major banks such as Bank of China (Hong Kong), HSBC, and Standard Chartered can issue cards on the same day. Stating ”investment in Hong Kong and U.S. stocks” or ”cross-border spending” as the purpose of opening the account is compliant; the key isI have traveled to Hong Kong for the in-person visa interview, and I have all the required proof of address and bank statements.The

Special Note: Some ”cashback account opening” brokers on social media platforms use forged or suspicious documents to open accounts on your behalf. The Hong Kong Monetary Authority has required the entire industry to conduct a three-year retrospective review of account opening records. Such accounts may be frozen at any time,The combination of compliance, foreign exchange, and tax risks makes it not worth the effort.The

05

A Few Things to Do Now

First, log in to the app to verify the account holder and status, and determine whether the account is set to ”Sale Only” or ”Normal Trading.” Do not take any action without first verifying this information.

Second, if you have a genuine need to be in Hong Kong (for work, study, or residency planning), you should apply for Hong Kong residency and a Hong Kong ID card as soon as possible; this is the most cost-effective way to lay the groundwork for compliance.

Third, be wary of the sales pitch about ”reopening accounts through internal channels.” The plan issued by the eight ministries establishes a two-year intensive rectification period; regulation will only become stricter, and the gray areas are rapidly shrinking.

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