Qilei Cai
Eight regulatory bodies, among them the China Securities Regulatory Commission (CSRC) and the Central Bank, released a joint statement committing to combat illegal cross-border stock trading and warning of severe penalties for well-known brokers.
The statement indicates that the campaign focuses on foreign companies and their local associates functioning without the necessary authorization. Targeted platforms comprise Futu Holdings, Tiger Brokers, and Long Bridge Securities.
Futu subsequently disclosed that Chinese authorities aimed to impose a $271 million fine on it, whereas Up Fintech Holding Ltd., parent company of Tiger Brokers, revealed a 308.1 million yuan ($45.4 million) penalty and intentions to seize 103.1 million yuan in earnings it considers illegal.
Up Fintech's ADRs decreased by 25% in New York on Friday, while Futu's shares traded in the US dropped by 27%.
The measures represent China's most forceful effort to stop citizens from engaging in foreign stock trading, an activity that is officially prohibited in the country, which enforces stringent capital controls to safeguard the national currency, according to Bloomberg.
source: bloomberg.com
The statement indicates that the campaign focuses on foreign companies and their local associates functioning without the necessary authorization. Targeted platforms comprise Futu Holdings, Tiger Brokers, and Long Bridge Securities.
Futu subsequently disclosed that Chinese authorities aimed to impose a $271 million fine on it, whereas Up Fintech Holding Ltd., parent company of Tiger Brokers, revealed a 308.1 million yuan ($45.4 million) penalty and intentions to seize 103.1 million yuan in earnings it considers illegal.
Up Fintech's ADRs decreased by 25% in New York on Friday, while Futu's shares traded in the US dropped by 27%.
The measures represent China's most forceful effort to stop citizens from engaging in foreign stock trading, an activity that is officially prohibited in the country, which enforces stringent capital controls to safeguard the national currency, according to Bloomberg.
source: bloomberg.com