In mid-June, a client came to me with his cell phone and asked, “My account is still active, and I can still sell stocks, so why can’t I transfer money into it?”

He uses a leading cross-border brokerage firm. Starting June 12, 2026, these platforms suspended fund deposits and new position openings for mainland users, allowing only selling, closing positions, and fund withdrawals.

Many people interpret this to mean that ”you can no longer trade Hong Kong and U.S. stocks.” In reality, it’s the trading channels that have been shut down, not the markets themselves. Today, I’ll clearly outline the paths that will still be open in 2026 and the ones you should avoid.

01

The two dates redrew the path.

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,” establishing a two-year period for intensive enforcement actions.

The targets of the crackdown are clear—they can be summed up in four words: “illegal channels.” First, institutions that are not licensed in China but solicit customers, advertise, or promote products within the mainland are engaging in unauthorized business operations. Second, funds that bypass official foreign exchange channels and are transferred out through underground money exchanges or similar means constitute illegal cross-border capital transfers.

On June 12, 2026, leading cross-border brokerage firms such as Futu, Tiger, and Changqiao initiated a ”one-way exit”: they suspended new positions, position increases, and fund transfers in from mainland users, while fund transfer-out functions remained normal. A two-year transition period was granted; this was not a blanket wipeout.

On June 17, Wu Qing, Chairman of the China Securities Regulatory Commission, specifically addressed this issue at the Lujiazui Forum, stating that there had been misunderstandings from the outside world. He explained that the crackdown targeted institutions without domestic licenses that were providing cross-border securities services within China, and made it clear that ”we continue to support and provide effective protection for investors who engage in cross-border investment through legitimate channels.” The approach is to ”open the front door and block the back door.”

So there is only one criterion for determining whether a path is viable:Whether the institution is licensed and whether the funds were transferred abroad legally.

02

Three Main Gates: The Gates Grow Wider and Wider

There are currently three channels for compliant overseas investment that are explicitly encouraged by regulators.

Hong Kong Stock Connect.Mainland brokerage accounts can be opened if the average daily assets in the account over 20 trading days are no less than 500,000 RMB. Funds are transferred directly in RMB, and the system automatically handles currency conversion. There is no individual $50,000 limit, as transactions go through a dedicated channel, and funds remain entirely within the domestic closed-loop system. The drawbacks are that the pool of investable assets is limited, and investors cannot participate in Hong Kong IPO subscriptions.

QDII funds.Investing in Hong Kong and U.S. stocks through domestic publicly offered mutual funds has the lowest entry barrier; you don’t have to worry about currency exchange or opening an account. The trade-off is that you cannot select individual stocks yourself, and there are limits on investment amounts as well as restrictions on subscription and redemption schedules.

Cross-Border Wealth Management Connect.To participate in the Guangdong-Hong Kong-Macao Greater Bay Area pilot program, certain conditions must be met; it is suitable for individuals who are based in the Greater Bay Area and have banking relationships with banks in Hong Kong or Macao.

These three strategies share the following characteristics: they have an extremely low probability of failure and relatively low flexibility. They are suitable for holding your main positions.

If you’re facing a similar situation—where your cross-border brokerage account has been restricted from receiving deposits and you’re unsure whether to hold onto your current positions or transfer them—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you sort everything out from start to finish.

03

How to Become a Licensed Brokerage Firm in Hong Kong

Many people think this road is closed, but it actually isn’t—they’ve just made the requirements clear.

On June 10, 2026, the Hong Kong Securities and Futures Commission issued a circular reiterating that licensed companies in Hong Kong may continue to open new accounts for mainland investors and continue to serve existing mainland clients, provided they comply with all account opening requirements, including KYC and client due diligence, obtain the necessary declarations, and designate a bank account.

At the same time, the Hong Kong Monetary Authority emphasized a stricter measure:Investment and settlement funds for mainland investors opening new accounts must come from legitimate sources outside mainland China.If the source of funds is found to be illegal or in violation of mainland capital control regulations, the relevant accounts must be closed immediately. In addition, all accounts opened using suspicious or forged documents, as well as dormant accounts with zero balances, must be closed.

These requirements can be summarized into four conditions that must be met: identification must be provided in the form of a Mainland Resident Identity Card or a Chinese passport; when opening a new account, a written declaration must be signed confirming that the investment funds are from lawful sources outside the Mainland; funds can only be deposited and withdrawn through a licensed Hong Kong bank account held in the account holder’s name; and the account holder must travel to Hong Kong to complete the process in person at a brokerage branch.

There is one more important reminder we must emphasize: Opening an account using fraudulent documents may violate Hong Kong’s Criminal Offenses Ordinance, constituting a criminal offense. The account will be immediately closed, and the matter will be reported to law enforcement authorities.

Scan the QR code to add Qicaiying’s online customer service

04

How Does Money Actually Come In and Go Out?

This section involves hands-on practice, and it’s also the one where mistakes are most likely to happen.

If you're using the Stock Connect program, depositing funds simply involves transferring RMB to your A-share account—it's no different from buying A-shares as usual, and you don't need to exchange currency yourself.

If you’re using a Hong Kong brokerage firm, the process involves three steps: First, open a Hong Kong bank account in your own name (brokerage firms only accept deposits from Hong Kong accounts under the same name; mainland bank cards cannot be directly linked); next, legally transfer funds out of the country to this Hong Kong account; and finally, transfer the funds from the Hong Kong account into your brokerage account.

Step 3 is the simplest: If your brokerage supports FPS (Fast Payment System), funds are credited in real time and there are no fees; wire transfers typically take 1 to 3 business days, with a handling fee of approximately 100 to 200 yuan plus telegraphic transfer fees.

The second step is the key.The annual $50,000 foreign exchange quota for individuals may not be used for overseas securities investments, in accordance with regulations.If you truthfully state the purpose of the funds, there is a possibility that the bank will reject your application; meanwhile, Hong Kong explicitly requires that funds come from legitimate sources outside the mainland. When read together, these two statements make the conclusion clear: this route is suitable for individuals who already have legitimate income from overseas—such as overseas salaries, dividends from Hong Kong companies, or proceeds from the disposal of overseas assets.

Withdrawal funds must be returned via the original payment method: Funds from a sale will be returned to the account in the same name as the account holder that was linked when the account was opened; they cannot be transferred to another person or a third-party payment platform.

Here are a few common reasons for rejection: transfers made under a different name, failing to include the brokerage account number in the transfer memo, entering ”investment” in the “purpose” field (which may be restricted by some banks), and missing proof of address. These are not policy issues but operational ones; you can avoid them by clarifying the requirements with your account-opening bank in advance.

05

Three Unconventional Paths You Should Definitely Avoid

This section is short, but it’s more important than the previous four sections.

First, having someone transfer funds on your behalf, splitting up the amount, and making small, incremental currency exchanges.If five relatives each transfer $50,000 to your Hong Kong bank account, regulators will view this as splitting up the transfers to circumvent the transfer limit—it’s not a smart move.

Second, private currency exchanges via WeChat and Alipay, and underground money exchanges.This is an illegal cross-border transfer of funds specifically targeted in the rectification plan; freezing of funds is standard practice, and if your card is blocked, it will have a ripple effect on your entire domestic account system.

Third, opening an account using false documents or through a nominee.Here in Hong Kong, authorities have made it clear that they will crack down on accounts opened using suspicious or forged documents; doing so constitutes a violation of criminal law, and the costs far outweigh any potential benefits.

When it comes to investing in Hong Kong and U.S. stocks in 2026, the approach has actually become simpler: if you want to keep things easy, use the Stock Connect program and QDII; if you want access to the full range of securities and the ability to participate in new share offerings, make sure you’ve first solidly established a Hong Kong bank account and secured a legitimate source of offshore funds. Those ”fast, cost-effective, and quota-free” shortcuts are now being phased out.

If you’re in a similar situation—receiving both dividends from a Hong Kong company and income from overseas—and want to get your Hong Kong bank card, brokerage account, and tax affairs all in order, feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you sort out this entire process from start to finish.

Scan the QR code to add Qicaiying’s online customer service

—— E N D ——