China clarifies stance on offshore investment accounts

The regulatory update, issued in response to growing market anxiety, serves as the clearest signal to date that overseas brokerages may continue providing legitimate services to mainland clients. While the campaign targets illicit cross-border activity, the watchdog explicitly stated that asset security remains unaffected. Onshore investors retain the right to sell their current holdings and withdraw funds from these accounts, even as authorities move to terminate unauthorized brokerage services within the mainland over the next two years.

Market turbulence followed the initial announcement on May 22, sparking a sell-off in U.S.-listed Chinese stocks as investors feared state-mandated asset seizure. Firms such as Futu, Tiger, and Longbridge have already informed clients that while new account openings and fresh deposits will cease by mid-June, offshore services remain operational. The commission maintains that its primary objective is to curb illegal capital outflows and disrupt unauthorized trading platforms that bypass domestic financial oversight, rather than penalizing individual savers participating in global markets.