China Cracks Down on Brokers for Illegal Cross-Border Trading

On May 22, 2026, China's Securities Regulatory Commission (CSRC) announced a crackdown on three brokers—Tiger Brokers, Futu Securities, and Longbridge Securities—for illegally facilitating cross-border trading without proper licenses. The CSRC aims to confiscate illegal gains and impose penalties, with fines amounting to 1.85 billion yuan (approximately $271 million) for Futu and 308.1 million yuan for Tiger Brokers. This enforcement action is part of a broader two-year campaign to combat illegal cross-border securities activities that have disrupted market order. The affected brokers will only be allowed to facilitate the sale of existing holdings, with no new investments permitted during this period. The crackdown has led to significant declines in the stock prices of these firms and related companies. The move reflects China's ongoing efforts to control capital outflows and ensure compliance with its securities laws.

Key Points: • China's CSRC is investigating Tiger Brokers, Futu, and Longbridge for illegal trading. • Futu faces a proposed fine of 1.85 billion yuan, while Tiger Brokers is fined 308.1 million yuan. • The crackdown limits affected brokers to only allowing clients to sell existing holdings.