China: Overseas Stocks Trading Apps Might be Illegal (FUTU etc)

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  1. #1

    Join Date
    Dec 2002
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    China: Overseas Stocks Trading Apps Might be Illegal (FUTU etc)

    The latest crackdown... Trading apps / brokerages that allow US stock trading.

    A Chinese central banker warned that online brokerages not licensed in China are acting illegally if they serve Chinese clients via the Internet, sending New York-listed shares of Futu Holdings Ltd (FUTU.O) and UP Fintech Holding sharply lower.

    "Cross-border online brokerages are driving in China without a driver's license. They're conducting illegal financial activities," Sun Tianqi, head of the Financial Stability Department of the People's Bank of China (PBOC), said in a speech, according to a transcript released on Wednesday.
    https://www.reuters.com/world/china/...aw-2021-10-28/

    https://www.thestandard.com.hk/secti...e-with-Beijing

  2. #2

    Join Date
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    It probably also applies to US brokerages,
    I think a few of them even have a dedicated Chinese speaking team.

    Deserves an own thread.
    I don’t invest in Chinese stocks and just came here because the other threads are not entertaining enough


  3. #3

    Join Date
    Oct 2021
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    By the same token, a US broker cannot offer financial services in Australia unless they first obtain a license to do so. Of course, this doesn't prevent individuals who have obtained such services from accessing them within Australia. It's just that such investments won't be protected under Australian law. So if the broker does a runner on you, you're on your own.

    Most brokers can't be accessed from China without a VPN anyway, so I don't see the big deal here. Caveat emptor.