China Moves to Shut Down Offshore Stock-Trading Channels Used by Mainland Investors

The clampdown hits a route that Chinese investors use to trade U.S. and Hong Kong stocks, raising capital-control and ADR concerns.

Traders work on the floor of the New York Stock Exchange on May 21, 2026. Michael M. Santiago/Getty Images

China’s securities regulator has opened enforcement actions against Futu, Tiger Brokers, and Longbridge Securities, accusing the offshore online brokerages of illegally serving mainland investors who used the platforms to trade U.S. and Hong Kong stocks.

The China Securities Regulatory Commission (CSRC) said on May 22 that it had opened investigations and issued administrative penalty pre-notification letters against Tiger Brokers (NZ) Limited, Futu Securities International (Hong Kong) Limited, Longbridge Securities (Hong Kong) Limited, and their related onshore and offshore entities.