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Hong Kong Brokers Suspend Accounts of China Users After Crackdown

  • Bright Smart asks clients to withdraw funds by Feb. 23
  • China cracks down to curb outflows that evade capital controls
Updated on

Hong Kong brokerages are starting to suspend accounts by mainland Chinese customers to comply with a ban issued late last year designed to halt an outflow of cash that runs afoul of the country’s strict capital controls.

Hong Kong-based Bright Smart Securities is suspending accounts held by mainland Chinese clients until further regulatory guidance is given, according to notice sent to clients that was seen by Bloomberg News. The Hong Kong unit of Chinese brokerage Guotai Junan Securities issued a similar circular, according to a report by thee Securities Times, which later became unavailable online. Spokespeople at Guotai Junan didn’t immediately respond to a request for a comment.