A man with a suitcase walks into the building of the China Securities Regulatory Commission in Beijing on November 12, 2025. Photo: VCG

Chinese authorities' campaign against illegal cross-border securities activities has entered a new stage, with Valuable Capital Group becoming the latest brokerage to announce service restrictions for investors in the Chinese mainland, following similar moves by Futu Securities International (Hong Kong) Ltd, Tiger Brokers (NZ) Ltd and Longbridge Securities (Hong Kong) Ltd.

In a Saturday notice to clients, Valuable Capital said that effective June 15, it will suspend all new position openings and position-increasing trades across all products, including stocks, for existing investors in the Chinese mainland, while continuing to allow only sell and position-closing transactions. The brokerage will also suspend fund and securities deposits, while withdrawals and securities transfers out will remain available, according to the Securities Times.

Multiple brokerages have moved to suspend a range of services for Chinese mainland investors following the release of an action plan jointly issued by eight Chinese authorities, including the China Securities Regulatory Commission (CSRC), to combat illegal cross-border securities, futures and fund business activities.

"The rectification marks a decisive step toward bringing previously unlicensed cross-border securities activities under a unified regulatory framework. The two-year transition period is designed to ensure an orderly wind-down of existing business while preventing further expansion of non-compliant operations," Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Sunday.

On Thursday, Futu Securities announced that starting June 12 it will suspend buy, opening and fund deposit services for Chinese mainland investors, allowing only sell and position-closing transactions as part of a two-year regulatory rectification campaign.

In addition, two other brokerages, Tiger Brokers and Longbridge Securities, also issued similar notices last week, suspending all new position-opening and position-adding transactions for Chinese mainland investors across all products in order to comply with Chinese regulatory requirements. 

The CSRC announced on May 22 that it would resolutely crack down on Tiger Brokers (NZ) Ltd, Futu Securities International (Hong Kong) Ltd and Longbridge Securities (Hong Kong) Ltd for illegal cross-border business operations.

The CSRC stated that the activities of these brokerages have violated China's laws and regulations concerning securities, funds and futures, and disrupted market order.

On the same day, eight Chinese authorities, including the CSRC, jointly released an implementation plan aimed at comprehensively addressing illegal cross-border securities, futures and fund operations. The plan mandates a crackdown on illegal activities conducted by overseas institutions in the Chinese mainland, including marketing, account opening, trading and fund transfers, strictly prohibits illegal business operations by overseas institutions in the Chinese mainland, and sets a two-year rectification period for the orderly disposal of existing business.

"By restricting new fund inflows and position expansion through unauthorized channels, regulators are strengthening oversight of cross-border capital flows and reducing potential financial risks. This is an important step in safeguarding China's financial security," Wang said.

"The current 'sell-only' approach reflects a balance between risk prevention and investor protection. Rather than forcing abrupt exits, regulators are allowing existing investors to unwind positions in an orderly manner, minimizing market disruption while guiding investors toward licensed and compliant investment channels," Wang noted.