menu

Homepage > News > China blocks offshore brokers

China blocks offshore brokers


Chinese regulators intend to prohibit online brokers Futu Holdings Ltd and UP Fintech Holding Ltd from offering foreign trade services to continental clients. All because of concerns about data security and capital outflow.

Futu Holding Lts and UP Fintech Holding Ltd are Chinese companies listed on the Nasdaq stock exchange. A ban on offering foreign trade services would prevent many mainland Chinese retail investors from quickly trading their securities in the US and Hong Kong markets. Authorities express concern about the outflow of capital and fear that fast-growing companies may counter China’s currency control program.

Companies will likely receive information about the ban in the next few months. Futu said it has attempted to communicate with the Chinese authorities. However, it did not receive a formal ban. The company works as before.

UP Fintech has declared that it will continue to follow the rules set by global regulators. Therefore, it will abide by and implement the new practices.

Chinese government’s comment

The Chinese authorities in October have already expressed their concern about cross-border brokers. Thus, it deepened the decline in both enterprises by nearly 80% compared to the peak in February. The central bank, the China Securities Regulation Commission (CSRC) and the State Currency Exchange Administration (SAFE) have not commented on Futu and UP Fintech.

Futu has been operating on the market since 2011, and UP Fintech since 2014. These companies enable customers from mainland China to open offshore accounts using personal data such as bank cards, ID cards and tax records. UP Fintech is valued at $ 737 million, while the Futu company is valued at $ 5.5 billion. Both companies are registered with the Hong Kong Securities and Futures Commission. However, the permit obtained does not cover the continent.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

FCA's Executive Director says the number of frauds will continue to increase

FCA warns against remote desktop fraud

UK financial regulator has warned again against desktop sharing scams. As of July 2020, 2,142 ...
Read More
Criminals cheat victims by promising to help them recover their money

Criminals cheat victims by promising to help them recover their money

Australian Scamwatch warns against offers of upfront recovery assistance. These types of scams target people ...
Read More
British court blocks class action against banks

British court blocks class action against banks

The Competition Court of Appeal (CAT) in London blocked a planned forex class action lawsuit ...
Read More
FX trading volume on the Moscow Stock Exchange fell 28.6% in March

FX trading volume on the Moscow Stock Exchange fell 28.6% in March

On Monday, the Moscow Exchange (MOEX), the largest stock exchange group in Russia, published turnover ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top