Tiger Brokers and Hong Kong banks hit by China regulatory crackdown

China’s securities regulator has fined Tiger Brokers, Futu Holdings and Longbridge Securities for offering unlicensed cross‑border securities, fund and futures services to mainland investors. Tiger Brokers faces a fine of about 411 million CNY and has announced that, from June 12, it will halt new deposits and purchases for mainland accounts, allowing only withdrawals and the reduction of existing holdings. The firm will cease all mainland operations after a two‑year compliance period.

Despite the crackdown, Tiger Brokers reported a 17.5% year‑on‑year rise in first‑quarter operating profit to US$47.6 million, with revenue up 26.3% driven by a surge in Hong Kong trading activity and strong IPO subscription volumes.

At the same time, major Hong Kong banks such as the Bank of East Asia and HSBC have suspended the opening of offshore accounts for mainland residents, tightening rules on capital outflows and requiring higher domestic balances for those seeking offshore services.