China Securities Regulatory Commission Issues Release Addressing 'Illegal Cross-Boarder Securities, Futures, and Fund Operations'
China Securities Regulatory Commission Issues Release Address 'Illegal Cross-Boarder Securities, Futures, and Fund Operations'.
- Via Translate: "The overall objective of the Rectification Plan is to comprehensively ban the illegal cross-border business activities of overseas securities, futures, and fund operating institutions (hereinafter referred to as "overseas institutions") within a concentrated rectification period of two years, thereby achieving the rectification goal of "resolutely banning illegal activities while prudently clearing up existing legacy issues." First, the scope of rectification targets includes overseas institutions engaged in illegal cross-border securities, futures, and fund business operations; domestic affiliated or cooperative entities that assist overseas institutions in such illegal cross-border operations; illegal intermediaries that solicit domestic investors; and internet platforms and online self-media accounts that publish information in violation of laws and regulations. The illegal cross-border business activities of overseas institutions shall be banned in accordance with the law; furthermore, any conduct by relevant entities that violates laws and regulations pertaining to foreign exchange administration, anti-money laundering, cybersecurity and information management, and personal information protection shall also be incorporated into the scope of this rectification campaign. Second, the measures for banning illegal cross-border business activities entail prohibiting overseas institutions from conducting marketing and solicitation activities related to securities, futures, and fund businesses within China, as well as prohibiting them from providing transaction-related services—such as account opening, processing trading orders, and fund transfers—to domestic investors. Additionally, domestic entities are prohibited from assisting overseas institutions in conducting illegal marketing and transaction services, as well as from providing them with services such as website hosting, the development and operation of trading software, and customer support. Thirdly, the measures for clearing up existing illegal business operations involve establishing a two-year concentrated rectification period. During this period, overseas institutions are prohibited from illegally providing existing investors within China with services such as buy-side trading or inbound fund transfers; only one-way sell-side trading and outbound fund transfers are permitted. Upon the expiration of the concentrated rectification period, overseas institutions must completely shut down their domestic websites, trading software, and ancillary services, and are prohibited from illegally providing trading or similar services to existing investors within China."
- Source: https://www.csrc.gov.cn/csrc/c100028/c7634324/content.shtml
- Selection of Tickers on watch:
- More names here starting on page 8: https://www.uscc.gov/sites/default/files/2025-03/Chinese_Companies_Listed_on_US_Stock_Exchanges_03_2025.pdf