Old Zhang, who trades Hong Kong and U.S. stocks, wanted to open another Hong Kong brokerage account last month to trade options. He visited three traditional brokerages; two of them told him outright, “We are currently not accepting new accounts from mainland residents,” while the third said, “You need to provide proof of assets totaling at least 5 million Hong Kong dollars.”

This is not an isolated case.Since 2026, more than 90% traditional Hong Kong brokerage firms have stopped accepting mainland ID cards for account openings.Tighter regulations, rising compliance costs, and stricter anti-money laundering scrutiny have led many brokerage firms to choose to “serve only clients in local and mature overseas markets.”

01

Why Are Hong Kong Brokerages Tightening Their Policies Across the Board?

Reason 1: Tighter regulation in mainland China. In 2026, regulatory authorities adopted a more cautious stance toward cross-border securities business, and some brokerages were concerned about the risk of engaging in illegal cross-border operations.

Reason 2: Soaring anti-money laundering compliance costs. Verifying the sources of funds for mainland Chinese clients, conducting tax identification, and meeting CRS information exchange requirements are more complex, making it difficult for small and medium-sized brokerage firms to bear the costs.

Reason 3: Changes in the business model. As traditional brokerage commissions have declined, securities firms have become more inclined to serve high-net-worth clients, and the customer acquisition value of ordinary retail investors in mainland China has decreased.

02

Channels that still accept account openings for mainland residents

Category 1: Certain international online brokerages. These brokerages cater to a global clientele and remain open to mainland clients, but require proof of residence abroad or documentation of tax residency status.

Category 2: Securities services offered by local Hong Kong banks. For example, stock accounts with banks such as HSBC, BOC Hong Kong, and Standard Chartered are relatively convenient for customers who already have bank accounts.

Category 3: Opening an account through a Hong Kong company or an offshore trust. Opening an institutional securities account in the name of a Hong Kong company offers greater compliance and practicality.

03

Three Questions to Ask Yourself Before Opening an Account

Question 1: Is the source of your funds clear and verifiable? Brokerage firms now require you to provide bank statements and proof of income covering the past 6 to 12 months.

Question 2: Do you have any offshore tax planning arrangements? Whether forms such as the W-8BEN, W-9, and CRS self-certification are filled out correctly directly affects your tax costs and account status.

Question 3: What is your investment objective? Short-term speculation, long-term asset allocation, or participating in IPOs? Different objectives call for different brokerage firms and account types.

04

A Rational Choice for 2026

For most mainland investors, the barriers to opening accounts for Hong Kong and U.S. stocks are indeed rising. However, this does not mean it is impossible to open an account; rather, the requirements for compliance and authenticity have become stricter.

We recommend entering the market primarily through a combination of a Hong Kong bank account and a compliant brokerage firm to avoid using gray-market channels. At the same time, preparing all required documentation regarding your tax status and source of funds in one go can significantly increase your chances of successfully opening an account.

Compliance in Hong Kong and U.S. stock investments is an inevitable trend.Instead of complaining about the higher barriers to entry, it’s better to go with the flow and ensure your accounts and taxes are in order.

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