Regulators on Both Sides of the Strait Jointly Crack Down on Hong Kong Stock Account Openings. Where Can Your Money Go Now?

Original Article: Odaily (@OdailyChina)

Author: jk

On May 24, Haiphong Road in Tsim Sha Tsui, Hong Kong, was eerily quiet—a scene that felt out of place.

A week earlier, this street was a "one-stop account opening hub" for mainland Chinese investors. Temporary broker booths and mobile stalls lined up, bustling with crowds. To attract mainland clients, brokers had practically lowered the bar to the floor: zero commission for Hong Kong stock accounts, free stocks, support for IPO subscriptions, and relaxed address verification requirements.

Yet just seven days later, the doors slammed shut. Now, mainland clients looking to open a Hong Kong stock account must not only sign a written declaration affirming that their funds originate from overseas and that they have never forged documents, but they may also face a "rejection notice" after completing the process.

This turning point began on May 22, when regulators from both sides of the border simultaneously enacted a coordinated crackdown, directly impacting millions of mainland investors who had been investing in overseas markets through Hong Kong brokers.

How severe is this regulatory storm? What is the real experience for mainland residents trying to open accounts in Hong Kong now? And what compliant channels remain for investing in overseas assets? Odaily breaks it down for readers.

1. Cross-Border Crackdown: The "Gray Channel" for Hong Kong Stock Investment Blocked Overnight

On May 22, regulatory agencies in Hong Kong and mainland China moved almost simultaneously, launching a pincer attack from both sides.

Following a review of account opening procedures at 12 securities brokerages, the Hong Kong Securities and Futures Commission (SFC) issued an unusually stern circular. It identified several major deficiencies: inadequate due diligence on account opening documents, acceptance of suspicious or forged documents during the account opening process, and significant weaknesses in managing cross-border agency relationships with overseas intermediaries. The SFC bluntly stated that these accounts could be used for illegal transactions, posing a non-negligible money laundering risk.

Specifically regarding mainland investors, the SFC attached an additional "three-part requirement" in the appendix: new account applicants must submit a written declaration, and all deposits, withdrawals, and settlements must be conducted through qualified bank accounts opened in the client's own name. The core content of the written declaration includes: confirming that all investment funds originate from legitimate sources outside mainland China, that the account has never been closed due to the use of suspicious documents, that the broker must be notified within 7 business days if circumstances change, and agreeing to disclose relevant information to law enforcement and regulatory bodies.



The SFC requires all licensed institutions to immediately conduct self-inspections, close accounts opened using suspicious or forged documents, as well as "dormant accounts" with zero balance or no transactions for 12 months. Senior management has been explicitly warned that severe compliance failures could lead to regulatory and enforcement actions.

Almost concurrently, the China Securities Regulatory Commission (CSRC), jointly with eight other ministries and commissions (Ministry of Industry and Information Technology, Ministry of Public Security, People's Bank of China, State Administration for Market Regulation, National Financial Regulatory Administration, Cyberspace Administration of China, State Administration of Foreign Exchange), formally issued the "Comprehensive Action Plan for Cracking Down on Illegal Cross-Border Securities, Futures, and Fund Business Activities." The plan includes a 2-year intensive rectification period, during which existing accounts are only allowed for one-way selling and fund withdrawals, with new positions prohibited. It also issued administrative penalty notices to Tiger Brokers, Futu Securities, Longbridge Securities, and related entities for illegal securities business operations. The scope, intensity, and determination behind this coordinated action are rare in recent financial regulatory history.

These two documents, from different regulatory systems, target the same issue: the long-standing model where many mainland investors used Hong Kong brokers to trade Hong Kong and US stocks, operating in a legal gray area, has officially come to an end. This time, the regulators meant business.

To understand why this action was so decisive, we need to look back at how "wide" this channel had become over the past two to three years.

From 2023 to early 2025, both the Hong Kong and US stock markets experienced successive rallies, and a wave of new IPO opportunities in Hong Kong emerged, fueling a surge in demand for account opening among mainland investors. At that time, internet brokers like Futu, Tiger, and Longbridge aggressively penetrated the mainland user base by leveraging smooth Chinese-language app experiences, low or even zero commissions, and support for direct RMB deposits. Some Hong Kong broker platforms did not require proof of address, or did not conduct substantive address verification, and even allowed deposits via stablecoins (USDT). Opening an account was almost just a click away.

As early as July 2016, the CSRC issued risk warnings, specifically naming Tiger Brokers and Futu Securities for providing overseas securities trading services like Hong Kong and US stocks. By the end of 2022, the CSRC launched a special rectification campaign targeting overseas brokers like Tiger and Futu. However, the effectiveness was limited; existing accounts continued to function normally, and some platforms even found workarounds to continue accepting new mainland clients after rectification.

This time, the authorities did not hold back. The policy focus shifted from restricting new accounts to rectifying existing ones. All previously available loopholes have been explicitly closed by regulators.

2. "Written Declaration in Hand," Yet Account Opening Still Fails

As soon as the new rules took effect, the quickest movers had already booked flights to Hong Kong, but account opening did not go smoothly. Over the past week, social media has been flooded with photos of a document titled "Written Declaration for Mainland Investors," all posted by mainlanders who personally visited Hong Kong broker branches to try opening accounts.

Blogger AB Kuai.Dong recounted a friend's experience: the friend traveled to a branch of UOB Kay Hian specifically to open a Hong Kong/US stock account, was asked to sign the "Written Declaration for Mainland Investors," filled out all the paperwork, and after waiting for over an hour, was still told "account opening application failed." Another blogger, Simon, documented a similar story: a friend walked in to open an account, signed the declaration, waited more than an hour, and ultimately received the same rejection.

Based on the declaration texts shared by multiple accounts, the content closely matches the requirements in the SFC circular's appendix, indicating that brokers have rapidly implemented the new rules.

Notably, signing does not guarantee account approval, but refusing to sign guarantees rejection. Blogger Li Zhi provided a straightforward interpretation: by having clients sign this declaration, brokers are essentially doing two things. First, transferring compliance responsibility—if issues arise, they can claim "the client declared the funds were legal." Second, screening clients—because most mainlanders trading Hong Kong and US stocks through Hong Kong brokers are already in a legal gray area, this declaration, requiring them to state in writing that their funds come from overseas, acts as a barrier in itself.

A report by Cailianshe on May 27 also confirmed this phenomenon across almost all Hong Kong broker account openings: since May 26, when opening investment accounts offline through Hong Kong bank channels, there are new document requirements, including signing a declaration regarding the legitimate sources of funds. A representative from a foreign bank in Hong Kong confirmed to the Cailianshe reporter that the addition of this new declaration is indeed happening.

According to reports, the newly added document is called the "Cross-Border Disclosure Statement (Applicable for Investment Account Opening Applications)." Based on documents shown by clients, the core content of the statement is: The person opening the investment account must confirm that "all funds used to support investment activities and related settlements originate from legitimate sources outside mainland China"; it also requires mainland residents to be aware that investment account services are only applicable to investors physically present in Hong Kong (e.g., those living or working in Hong Kong) and to ensure the source of funds is legal and compliant.

The document also clearly states that, to comply with relevant Hong Kong regulatory requirements, banks may request supporting documents from clients. Failure to provide them could lead to a refusal of service, and existing services may also be terminated. It's important to note that this doesn't just affect new account openings. A customer service representative from a Chinese state-owned bank confirmed to the Cailianshe reporter that mainland investors who opened investment accounts between May 23 and 25, 2026, also need to sign the new cross-border declaration retroactively, with no transition period provided.

3. Who Can Still Open Accounts? A Review of Existing Compliant Channels

This tightening has directly closed the mainland entry points for major internet brokers, but not all channels are shut down.

Brokers that have completely stopped accepting new mainland clients: Futu Securities, Tiger Brokers, Longbridge Securities, and Huasen Securities. These four have all closed their new account channels. Some existing accounts can still trade normally but are restricted to one-way selling, awaiting full closure after the 2-year transition period.

Hong Kong-licensed brokers that still offer limited channels for mainland residents (as of the publication date, the situation remains dynamic):

UOB Kay Hian is currently one of the few Hong Kong brokers still supporting direct account opening for mainland users. It holds SFC licenses for Type 1, 4, and 9 regulated activities, and its US subsidiary is SEC-registered and FINRA-regulated, providing a relatively sound compliance framework. However, based on the latest social media feedback, UOB Kay Hian has significantly tightened its account opening review for mainland residents since the new rules took effect, with a sharp increase in walk-in rejection cases. Success largely depends on whether the applicant truly meets the "funds from outside mainland China" condition.

Fosun Wealth and Chief Securities are two other options that still retain channels for mainland users.

One blogger claimed that, according to the latest news from Fosun official sources, their adjusted account opening policy is: address proof is no longer required, but applicants must use a VPN or be physically present in Hong Kong for the application; users of Hong Kong virtual bank cards like ZA Bank, Tianxing Bank, or HSBC must have their location set to Hong Kong during application. Odaily has verified with Fosun official sources that this account opening policy is a rumor; account openings still require compliance with the aforementioned regulations.

For users with overseas status (international students, work visa holders, overseas permanent residents, etc.), conditions are relatively relaxed, but they must still provide proof that their funds originate from overseas.

Opening an account is just the first step. How to transfer funds in is another core constraint of the new rules.

The SFC circular explicitly requires that deposits, withdrawals, and settlements for mainland investor accounts can only be conducted through accounts opened in the client's own name at a licensed bank in Hong Kong or a qualified jurisdiction. The practice of transferring funds through money changers, friends, or USDT has been explicitly blocked from a compliance perspective.

Practically speaking, the prerequisite for smoothly depositing funds is owning a Hong Kong bank account with your real name. Hong Kong virtual banks like ZA Bank and Tianxing Bank support FPS (Faster Payment System), allowing normal deposits to broker accounts. Some brokers (like UOB Kay Hian) also allow their eDDA (electronic Direct Debit Authorization) fast deposit feature to bind ZA Bank. Therefore, for users without a Hong Kong bank account, securing a Hong Kong bank card before opening a securities account has become an essential step.

Overall, after May 2026, the compliant path for average mainland investors to invest in Hong Kong and US stocks has narrowed significantly but hasn't been completely closed. Based on the current situation, several routes remain viable.

The Most Stable Path: Compliant Identity, Compliant Fund Channels, and a Hong Kong Bank Account. International students, overseas work visa holders, and residents of Hong Kong and Macau, holding overseas proof documents and meeting the "funds from outside mainland China" condition, can still open accounts with licensed brokers like UOB Kay Hian, Chief Securities, or Fosun Wealth. Tourists have a higher chance of failure, particularly concerning the source of funds.

Policy-Compliant Channels: Stock Connect, QDII, Cross-Border Wealth Management Connect. These are the directions regulators clearly want to guide capital flows. Although product ranges and quotas are limited, they are fully compliant. Funds from affected mainland investors are expected to gradually shift toward these channels.

On-Chain Path: Platforms like Hyperliquid, xStocks, etc., offer technical alternatives. For users who can meet these platforms' account requirements, it is also an option. However, it's important to note that such on-chain products have clear compliance boundaries. Recently, several projects offering Hong Kong stock crypto products have explicitly issued announcements stating that, in response to Hong Kong's new regulations, they will no longer offer such products. Simultaneously, most products in this category do not accept registrations from mainland Chinese users, making them more suitable for users living overseas.

Conclusion: A Major Tightening, but Opportunities Remain

This crackdown represents the concentrated release of long-standing accumulated tensions. The disorderly expansion of Hong Kong brokers targeting mainland clients in recent years undoubtedly brought substantial user growth, but it also left a trail of compliance risks, including forged documents, unidentified fund sources, and the misuse of dormant accounts. The synchronized regulatory actions from both sides send a clear signal to the market: the era of this gray channel's dividends is over.

For mainland investors who still need to allocate assets to Hong Kong and US stocks, the road ahead will not be easier, but compliant choices still exist. Which path to take depends on an individual's identity status, risk tolerance, and personal judgment of compliance boundaries. Regardless, before signing any written declaration, one must be clear: once signed, the legal responsibility rests squarely on your own shoulders.

(Odaily Note: This article is compiled based on official SFC circulars, CSRC announcements, reports from Cailianshe, Yicai, etc., and firsthand information from social media, for informational reference only and does not constitute investment advice.)