Mr. Li from Hangzhou opened an account with Futu in 2024 and gradually deposited several hundred thousand Hong Kong dollars into it to trade Hong Kong stocks. This year, he wanted to open another account to diversify his risk, but discovered that the Futu and Tiger apps had long been removed from mainland app stores, and clicking on the account opening links resulted in a message stating, ”Services are not available to users within China.”
He was a little worried: Does this mean the door to buying Hong Kong and U.S. stocks is now completely shut for mainland residents? The answer isn’t that clear-cut, but the situation is certainly very different from what it was a few years ago. The regulatory environment in 2026 is forcing everyone who wants to buy Hong Kong and U.S. stocks to first get a firm grasp on the concept of ”compliance.”
01
The Turning Point of 2026
The key points areMay 22, 2026. The China Securities Regulatory Commission (CSRC) has officially launched an investigation into ”illegal cross-border business operations” by Futu Securities, Tiger Securities, and Changqiao Securities and their affiliated entities. This means that these companies’ channels for aggressively recruiting clients in mainland China—which had been used to open new accounts—have seen their scope for opening new accounts for mainland residents significantly restricted.
Earlier, Document No. 42 issued jointly by eight relevant departments in 2026 had already made it clear: any form of illegal cross-border securities services within China is strictly prohibited, and overseas institutions are not permitted to provide trading channels to domestic entities in violation of regulations in any form. Existing clients of Futu, Tiger, and Changqiao can still trade, but it is virtually impossible for new mainland users to open accounts.
So when I see tutorials online today titled ”Step-by-Step Guide to Getting Started with Futu,” they’re mostly outdated. The real question is:What compliant options are currently available for mainland residents who want to buy Hong Kong and U.S. stocks?
02
What are the compliance pathways?
Rule 1: WalkHong Kong-licensed brokerage firms. Brokerage firms licensed by the Hong Kong Securities and Futures Commission (SFC) are open to clients worldwide. It is compliant for mainland residents to open accounts as ”overseas clients,” provided that the account opening process takes place overseas and funds are transferred via compliant cross-border remittances (within the annual $50,000 simplified remittance quota per person). Interactive Brokers (IBKR) is a leading example of this type of broker, offering strong access to global markets.
Article 2 isAlong with a Hong Kong bank card. This is where the Hong Kong bank card mentioned earlier comes in handy: by using a Hong Kong bank card as a funding channel, both deposits and withdrawals are processed entirely within the Hong Kong banking system, making the process much smoother than cross-border wire transfers directly from mainland China. This is why the combination of a ”Hong Kong bank card and a licensed Hong Kong brokerage” is referred to as the ”third option” for buying Hong Kong and U.S. stocks in 2026.
Article 3,Hong Kong-China Stock ConnectA plan that only allows you to buy Hong Kong stocks but not U.S. stocks isn’t a complete solution; plus, the account opening requirement is 500,000 in assets, so it’s only suitable for people who already hold positions in A-shares. If you really want to buy Tesla or Apple, you’ll still have to go with the first two options.
03
How to Choose Among Several Brokerage Firms
If you decide to go with a ”Hong Kong-licensed brokerage,” there are several common options. Comparing Changqiao, Interactive Brokers, and traditional U.S.-based brokerages: Changqiao has a low account opening threshold (only an ID card is required), charges a commission of 0.025% for Hong Kong stocks and 0.035% for U.S. stocks, and is beginner-friendly; Interactive Brokers offers the most comprehensive features and broadest global market coverage, but its interface is geared toward professionals, and withdrawals require a foreign bank account.
Futuhui and Tiger’s product experiences remain the industry benchmark, but as mentioned earlier, new account openings in mainland China are now restricted, and they currently serve primarily existing customers and overseas users. Therefore, for mainland residents looking to open a new account,Hong Kong- and internationally licensed entities such as Changqiao and Interactive Brokers are the realistic options.The
When choosing a brokerage firm, keep two things in mind: First, check the SFC license number—it’s only valid if it can be verified on the official website. Second, verify that client assets are held in separate custody, isolated from the brokerage firm’s own funds; this is a basic safeguard provided by licensed brokerage firms.
04
Three Red Lines You Must Not Cross
First.Underground Money Exchanges and Illegal Currency Exchange. To circumvent the $50,000 limit, some people turn to underground channels to transfer funds, which is clearly illegal; their accounts may be frozen, and they may face administrative penalties or even criminal liability. The proper course of action is to exchange currency in compliance with regulations and truthfully declare the purpose of the funds (”overseas investment”).
Second.”Internal Trading” on Unlicensed Platforms”. Some platforms that claim to offer ”no account registration required, direct copy trading” often lack overseas licenses and provide no guarantees for the safety of funds; if the platform goes under, investors stand to lose their entire investment.
Third.Failure to File Tax Returns. If you make a profit from U.S. stocks in 2026, you are required by law to file an individual income tax return in China. With the implementation of CRS 2.0, the exchange of information on offshore securities accounts is becoming increasingly transparent; the risk of having to pay back taxes and late payment penalties for deliberately concealing overseas income will only continue to rise.
05
Advice for Ordinary People
If you don’t have a lot of capital and just want to invest a little in Hong Kong and U.S. stocks, the safest way to get started is to first open a Hong Kong bank account, then choose an SFC-licensed brokerage with low account opening requirements (such as Changqiao), and use your Hong Kong bank account to fund your trading account. The entire process is conducted within the regulatory framework, so you don’t have to worry about your account being frozen.
When transferring funds overseas, use the annual $50,000 foreign exchange quota for legal currency purchases and truthfully report the purpose of the funds. If you make a profit, be sure to keep your tax payment receipts so you can claim a tax credit when filing your domestic tax return in the future. Don’t be tempted by shortcuts—the bottom line for cross-border investments has never been ”how much you earn,” but rather ”whether your account is still intact.”
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