Steadily and orderly promote the standardization and rectification of illegal cross-border exhibition industry

Steadily and orderly promote the standardization and rectification of illegal cross-border exhibition industry

In response to the rectification of illegal cross-border exhibition industry by overseas licensees concerned by the market, the CSRC indicated that it would promote the rectification of illegal cross-border exhibition industry by Futu Holdings and Tiger Securities in accordance with the law. The CSRC officially issued the Measures for the Administration of Securities Brokerage Business, which clearly stated that it would strengthen the daily supervision of illegal cross-border brokerage business and steadily and orderly promote the rectification and standardization work. According to the principle of unified supervision of similar businesses, the CSRC deployed and carried out the standardization and rectification of illegal cross-border exhibition industry of overseas subsidiaries of domestic securities companies.

The regulation and rectification of the above-mentioned illegal cross-border exhibition industry behavior shall be carried out in accordance with the principle of "effectively curbing the increment and orderly dissolving the stock". The core requirement is that overseas institutions that are not licensed in China are prohibited from soliciting domestic investors in violation of regulations and may not open new accounts for them; At the same time, existing domestic investors are still allowed to continue trading through the original overseas institutions, but existing investors should strictly abide by the relevant provisions of China's foreign exchange management when transferring incremental funds to overseas accounts.

The CSRC is worried that some media reports are not objective and untrue. It is understood that most securities companies involved in this kind of business are actively implementing relevant rectification requirements and stopping opening new accounts in violation of regulations. Relevant securities companies and their overseas subsidiaries can fully and accurately understand the regulatory requirements, make rectification in compliance with the law, and will not restrict the trading of existing customers without reason.

In the next step, the CSRC will urge relevant securities companies and their subsidiaries to implement relevant laws and regulations, steadily promote standardization and rectification, 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 domestic and foreign regulatory authorities to ensure the smooth progress of rectification and maintain the smooth operation of the market.