TechFlow news: On June 6, following Futu, Tiger Brokers, and Longbridge, another cross-border brokerage announced the cleanup of its existing mainland China business. Huasheng Securities issued a notice to clients on the morning of June 6 stating that, effective 00:00 Beijing Time on June 15, it will adjust services for existing investor accounts in mainland China as follows:
First, trading services in mainland China: Opening new positions or adding to existing positions in stocks and all other product categories will be suspended; only selling and closing-out operations will remain available.
Second, fund transfer services in mainland China: Transfers of funds and securities into mainland China accounts will be suspended, while transfers out will remain fully operational.
The notice states that this adjustment is intended to comply with industry regulatory requirements during the two-year concentrated rectification period and to promote standardized development of cross-border securities business. It emphasizes that this adjustment does not affect services provided to existing investors outside mainland China, nor does it impact the safety of all clients’ existing assets; clients may continue to check their account balances, hold, and sell existing positions normally. This also implies that, in addition to the three brokerages directly named by the China Securities Regulatory Commission (CSRC) on May 22, some smaller and medium-sized brokerages will also begin rectifying their existing non-compliant businesses. (Yi Cai)
