On May 22, 2026, the China Securities Regulatory Commission and seven other government agencies jointly issued a document that completely overhauled the rules governing mainland residents’ trading of Hong Kong and U.S. stocks.

This “Implementation Plan for the Comprehensive Crackdown on Illegal Cross-Border Securities, Futures, and Fund Operations” led to the launch of investigations into three overseas brokerage firms—Futuhui, Tiger, and Changqiao—which were collectively fined more than 2 billion yuan. This has left many people worried: Will I still be able to access the money in my account?

First, the conclusion: The funds in existing accounts are safe, but the options for opening new accounts have been strictly limited to just a few compliant channels.

01

What Exactly Did the Crackdown Address?

This crackdown targets ”illegal cross-border operations by foreign institutions.” Simply put, it refers to foreign brokerage firms without domestic licenses that enter the domestic market to solicit clients, open accounts, process trade orders, and transfer funds.

Existing domestic clients of Tiger, Futu, and Changqiao will enter a two-year intensive rectification period: they will only be allowed to sell, not buy; and only to transfer funds out, not in. Upon expiration of this period, the domestic websites, apps, and services will be completely shut down.

However, regulators have made it very clear: they will not cut off legitimate channels. Existing holdings of stocks, mutual funds, and cash will not be forcibly liquidated or frozen; you will retain ownership of them.

So the claim that ”the money is gone” is a misinterpretation. What has actually changed is that ”it will be virtually impossible to open a new overseas account through domestic channels in the future.”

02

The Hong Kong Securities and Futures Commission took action at the same time

On the same day, the Hong Kong Securities and Futures Commission also issued a circular. After reviewing the account-opening procedures of 12 securities brokerage firms, it identified several significant deficiencies: inadequate due diligence, acceptance of suspicious or forged documents, and weak cross-border agency relationships.

The circular requires licensed corporations to take additional measures: close accounts opened with suspicious or forged documents; close inactive accounts with zero balances; obtain a written statement from investors regarding the source of funds for new accounts; and ensure that settlements and deposits and withdrawals are processed only through bank accounts held in the client’s own name.

Shortly thereafter, in early June, the Hong Kong Monetary Authority stated that the banking sector had implemented the latest regulatory requirements to ensure that the account-opening process is compliant and orderly, and that mainland customers can continue to apply to open accounts.

To put it simply: Licensed Hong Kong brokerage firms can still provide you with services, but only if you are physically present in Hong Kong and open an account through legal channels—not if you’re ”solicited” remotely from the mainland to open an account.

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03

The Few Remaining Paths to Compliance

Option 1: Hong Kong Stock Connect. This is the most mature and least controversial channel, with funds circulating within a closed loop through the domestic brokerage system. The eligibility requirement is an average daily asset value of 500,000 over 20 trading days.

Option 2: QDII and QDII-type funds. These Qualified Domestic Institutional Investor products, issued through licensed institutions, allow for indirect investment in overseas assets and are suitable for investors who do not wish to open their own accounts.

Third, the Cross-Border Wealth Management Connect. Designed for Greater Bay Area residents, this program allows them to purchase eligible wealth management products sold by banks in Hong Kong and Macao simply by opening an account at a mainland bank. In 2026, both the range of products and the level of convenience will be enhanced.

Option 4: If you are in Hong Kong, use a licensed Hong Kong brokerage firm and a Hong Kong bank card. This is the only way to ”open an account and start trading directly”: You must go to Hong Kong in person and use your Hong Kong bank card and Hong Kong ID card or travel permit to open an account at a licensed brokerage firm’s counter or through a compliant app.

Please note the distinction: Existing users of Futu and Tiger can still use the services normally as long as they are located overseas; what has been banned is their solicitation and business operations within ”mainland China.” Do not misinterpret ”existing users can still use the services” to mean ”new accounts can still be opened within mainland China.”

04

Content platforms have also fallen into the same trap.

Since June 2026, Xiaohongshu and Douyin have cracked down on content related to illegal cross-border investment. Xiaohongshu has removed 539 posts and 146 comments that encouraged cross-border investment; over the past two weeks, Douyin has removed more than 1,500 pieces of related non-compliant content, including posts that ”taught users how to apply for Hong Kong bank cards and open securities accounts” to drive traffic.

This means that the vast majority of ”account opening guides” and ”Hong Kong card application services” that people used to come across in their searches were non-compliant content—or even scams designed to lure users. Following these posts can result in anything from being unable to open an account to, in the worst cases, losing money to scammers.

The truly compliant approach is to use the four officially recognized channels listed above and avoid any services such as ”unlicensed Hong Kong stock account registration” or ”opening U.S. stock accounts through internal channels.”

05

A Single Sentence to Clarify the Direction

After 2026, the approach to buying Hong Kong and U.S. stocks from the mainland will shift from ”opening an account casually” to ”going through official channels.” The Stock Connect programs, QDII, and Cross-Border Wealth Management Connect are suitable for most people; for those who want to trade directly and have substantial capital, the compliant path is to go to Hong Kong to open an account with a licensed brokerage firm and obtain a Hong Kong brokerage card.

No matter which option you choose, there is only one core principle: conduct the transaction through a licensed institution and via legitimate channels, so that both your funds and identity can withstand scrutiny by regulatory authorities. This is not only a regulatory requirement but also the best way to protect your assets.

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