Old Zhang, who trades Hong Kong and U.S. stocks, opened Futu early on the morning of June 12, intending to increase his position in a U.S. stock, but the system displayed a message saying, “Buy limit reached.” He was baffled: There was clearly money in his account, so why couldn’t he buy?

He later learned that 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.” Futu, Tiger, and Changqiao were fined 2.3 billion yuan, and existing domestic clients were barred from making purchases or depositing funds starting June 12—they could only sell, not buy.

This article clearly explains the underlying changes in Hong Kong and U.S. stock market regulations for 2026, as well as the compliance options available to mainland investors—so you can avoid operating in a gray area.

01

What Exactly Is the "May 22" Crackdown Targeting?

On May 22, 2026, the China Securities Regulatory Commission (CSRC) and seven other government agencies jointly issued the “Implementation Plan for the Comprehensive Crackdown on Illegal Cross-Border Securities, Futures, and Fund Operations,” which clearly identified the targets of the crackdown: overseas brokerage firms that provide U.S. and Hong Kong stock account opening and trading services to domestic investors without approval from domestic regulators. Futu, Tiger, and Changqiao were among those investigated and penalized, with total fines amounting to approximately 2.3 billion yuan.

A two-year concentrated rectification period has been established for implementation. Starting June 12, 2026, relevant overseas brokerage firms will adjust services for existing domestic clients: new positions and additional purchases across all asset classes, including stocks, will be suspended, with only sales and position closures permitted; fund transfers into accounts will be suspended, while outbound transfers will continue as normal. Simply put, existing accounts can sell and withdraw funds, but cannot buy or deposit funds.

The crackdown targets “illegal cross-border business operations by overseas institutions,” not the severing of all channels for overseas investment. Legitimate channels (Stock Connect, QDII, and Cross-Border Wealth Management Connect) remain unaffected; this is the key to understanding the policy as a whole.

02

The Hong Kong Monetary Authority took simultaneous action

On May 22, 2026, the Hong Kong Monetary Authority issued a circular to all registered institutions, requiring them to conduct internal audits of account opening records dating back to January 2023, with a focus on screening accounts opened using suspicious or forged documents. The audits must be completed within three months, and such accounts must be forcibly closed within six months; Inactive accounts with a long-term zero balance and no transaction history must also be cleared.

The Hong Kong Monetary Authority has imposed stricter requirements for new mainland investor accounts: a written declaration from the client must be obtained confirming that all investment funds come from lawful sources outside mainland China and that the client has never had an account closed by another institution due to the use of suspicious or forged documents; all settlements and fund deposits and withdrawals must be conducted through a bank account held in the client’s own name.

Once it is discovered that funds have come from illegal sources or violate mainland capital controls, institutions must immediately close the accounts. The Hong Kong Securities and Futures Commission has also made clear its “zero-tolerance” policy, and regulators in both jurisdictions are coordinating efforts to tighten regulations.

If you’re facing a similar situation—you have existing Hong Kong or U.S. stock accounts, aren’t sure which category you fall into, or are worried about whether your buying will be restricted—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you conduct a compliance self-assessment for your account. Feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you sort out this entire process from start to finish.

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03

Five Compliance Paths for Mainland Investors

First, Hong Kong Stock Connect (Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect): Invest in eligible Hong Kong stocks through mainland brokerage firms; funds remain within a closed loop in mainland China, making this the safest option. Second, QDII mutual funds: Qualified mainland institutions invest in overseas securities markets through these funds, which feature low entry barriers and clear compliance requirements.

Article 3: Cross-Border Wealth Management Connect “Southbound Link”: Residents of the Greater Bay Area may open investment accounts and invest in eligible wealth management products; the Hong Kong Monetary Authority has clarified that this channel is not subject to any additional restrictions. Article 4: Opening Accounts in Hong Kong with Overseas Status: Individuals who have obtained compliant overseas status—such as a Hong Kong non-permanent identity card, overseas permanent residency, or a long-term visa—may open accounts and trade through licensed Hong Kong brokerage firms in the normal course of business.

Article 5: U.S. stocks traded through U.S.-licensed brokerage firms—such as Moomoo Financial Inc. (registered with the U.S. SEC)—are subject to U.S. regulation. Their accounts and those of Hong Kong-based entities fall under different jurisdictions, and trading conditions may also differ. However, this is contingent upon compliance with identity verification and source-of-funds requirements; do not resort to using forged documents.

04

Account Self-Assessment and Risk

If you have an existing Hong Kong or U.S. stock account, first verify that your account registration information is accurate. If you hold a valid foreign identification document (such as a Hong Kong non-permanent resident ID card), you may update your identification information according to your brokerage’s instructions; once the review is approved, your trading and fund transfer functions will generally remain unaffected. If you hold only a Mainland ID card, you may face restrictions on buying stocks and depositing funds.

"Zero-balance accounts" that have been inactive for an extended period will be closed. We recommend logging in to check your account status and reactivate it if needed. Under no circumstances should you trust brokers on social media offering "cashback packages for opening Hong Kong brokerage accounts"—such gray-market practices can result in your account being closed at any time and carry multiple risks, including legal, foreign exchange, and tax-related issues.

Please also note: Hong Kong regulators have required institutions to conduct a three-year retrospective review of account opening records. Accounts found to have used false address proofs or forged documents will be immediately frozen or closed, and the account holders may be prohibited from opening new accounts with the same institution or its affiliates.

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05

How to Safely Trade Hong Kong and U.S. Stocks in 2026

First, prioritize legal channels: Stock Connect, QDII, and the Cross-Border Wealth Management Connect cover the vast majority of investment needs and are hassle-free and compliant. Second, for those with a genuine need for overseas investment, use your own overseas identity or a U.S.-licensed brokerage firm; ensure your documentation is authentic and that you can clearly account for the source of your funds.

Third, make deposits through your own compliant bank accounts (such as U.S. bank cards via ACH or your own Hong Kong bank card), and strictly avoid third-party payments or using personal accounts as a workaround. Fourth, treat Hong Kong and U.S. stocks as part of your long-term asset allocation, rather than relying on shady brokers for short-term convenience.

In a nutshell: For Hong Kong and U.S. stocks in 2026, compliance is the only ticket to entry. Only with legitimate channels, clear identity, and transparent funds can you hold these stocks with peace of mind; if you take a “let’s just get started and worry about it later” approach, you’ll be forced out sooner or later.

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