China Fund Daily Taylor
Just now, the Securities Regulatory Commission released major news.
There are these key points.
1. Recently, we will deploy and carry out the standardization and rectification of the illegal cross-border exhibition industry of overseas subsidiaries of domestic securities companies.
2. The core requirement is to prohibit foreign institutions that are not licensed in China from illegally recruiting domestic investors and not to open new accounts for them.
3. At the same time, stock domestic investors are still allowed to continue to conduct transactions through the original overseas institutions, but stock investors shall strictly abide by the relevant provisions of China's foreign exchange control when transferring incremental funds to overseas accounts.
4. Relevant securities companies and their overseas subsidiaries can fully and accurately understand the regulatory requirements, comply with the rules and regulations and carry out rectification and reform in an orderly manner in accordance with the law, and will not restrict the transactions of stock customers without reason.
The full text is as follows:
A spokesman for the Securities and Futures Commission answered the reporter's question
Q: recently, the market is more concerned about the rectification and reform of the illegal cross-border exhibition industry of overseas licensees. Does the CSRC have any comments?
A: on December 30, 2022, I will promote the rectification of the illegal cross-border exhibition industry of Futu Holdings Limited and Tiger Securities in accordance with the law, and issued a press release. On January 13, 2023, I will formally issue the measures for the Administration of Securities Brokerage Business, which makes it clear that we will strengthen the daily supervision of illegal cross-border brokerage business and promote rectification and standardization work in a steady and orderly manner. In accordance with the principle of unified supervision of the same kind of business, we have recently deployed and carried out the standardization and rectification of the illegal cross-border exhibition industry of overseas subsidiaries of domestic securities companies.
The standardization and rectification of the above-mentioned illegal cross-border exhibition industry are carried out in accordance with the principle of "effectively containing increment and resolving stock in an orderly manner". The core requirement is to prohibit foreign institutions that are not licensed in China from illegally recruiting domestic investors and not to open new accounts for them; at the same time, stock domestic investors are still allowed to continue to conduct transactions through the original overseas institutions, but stock investors shall strictly abide by the relevant provisions of China's foreign exchange control when transferring incremental funds into overseas accounts.
We are concerned that some media reports are not objective and untrue. It is understood that the vast majority of securities companies involved in such business are actively implementing the relevant rectification and reform requirements and stopped opening new accounts in violation of regulations. The relevant securities companies and their overseas subsidiaries can fully and accurately understand the regulatory requirements, comply with the rules and regulations and carry out rectification and reform in an orderly manner in accordance with the law, and will not restrict the transactions of stock customers without reason.
In the next step, I will urge relevant securities companies and their subsidiaries to implement the requirements of relevant laws and regulations, steadily promote standardization and rectification work, maintain normal market order, and protect the legitimate rights and interests of investors. At the same time, we will continue to strengthen regulatory cooperation with regulatory departments at home and abroad to ensure the smooth progress of rectification and reform and maintain the smooth operation of the market.
Previously, Yaocai Securities, a securities firm in the Hong Kong Special Administrative region of China, informed customers by e-mail that "in view of the previous regulatory allegations that some Hong Kong securities firms illegally engaged in cross-border securities business in the mainland", it was decided to temporarily close the accounts of customers with mainland status from February 16, and can not continue to use them until they have obtained the latest guidelines from regulators.
On the evening of February 13, Yucai Securities announced on the Hong Kong Stock Exchange that in order to actively cooperate with the measures of Chinese regulators, the Group took the lead in suspending the use of securities accounts opened by all mainland customers in the mainland before Chinese regulators or the CSRC clarified the relevant laws and regulations.
In addition, Yaocai Securities also said that the procedures for opening remote accounts have been examined in accordance with the requirements for opening remote accounts set by the Hong Kong Securities and Futures Commission: all people who do not open accounts in Hong Kong, China, all need to hold a Hong Kong bank account as a clearing account before they can open an account; those who open an account must deposit not less than HK $10000 through their registered Hong Kong bank account for identity authentication.
For Yaocai Securities one-size-fits-all approach, industry analysts said, "only from the content of Yaocai Securities email, this is a unilateral arrangement made by individual brokerages on customer accounts, not regulatory requirements put forward by regulators."
The CSRC's announcement tonight allows domestic investors in the stock to continue to trade through the original overseas institutions.
After the news came out, the share prices of Futu and Tiger rose sharply before the US stock market, and the stock of old customers would not be affected, so they did not have to sell shares to close their accounts.