China Expands Clampdown on Offshore Brokers Targeting Locals
- China broadens clampdown on cross-boarder capital flows
- Regulators are seeking to prop up flagging domestic markets
The China Securities Regulatory Commission.
Source: VCG/Getty ImagesThis article is for subscribers only.
China has told its securities firms and their offshore units to stop conducting illicit cross-border business, including brokering shares and selling funds to domestic investors, in a bid to plug regulatory loopholes.
The overseas units must stop all marketing activities and promotions aimed at mainland investors and close all channels for new account openings, including onshore apps and websites, by Oct. 31, according to a notice from the China Securities Regulatory Commission that was seen by Bloomberg News. The CSRC didn’t immediately respond to a faxed request for a comment.