The China Securities Regulatory Commission, jointly with other agencies and with State Council approval, has issued an implementation plan for a two-year campaign against illegal cross-border securities, futures and fund business. The plan aims to fully shut down offshore institutions that operate in China without approval, pursue serious violations, and reduce existing domestic investor accounts and asset balances in phases while protecting investor property. The measures cover offshore institutions providing securities, futures or fund services in China without approval, domestic affiliates and intermediaries that help market or facilitate those services, and websites, apps, internet platforms and self-media accounts that publish related marketing or account-opening content. Offshore institutions are barred from conducting onshore marketing, opening accounts, handling trade instructions or moving funds for illegal business, while domestic parties are prohibited from providing promotional, technical or customer service support. During the two-year clean-up period, existing investors may only conduct one-way sales and withdraw funds, with no new purchases or inbound transfers. After the period ends, offshore institutions must shut China-facing websites, trading software and related servers and stop providing illegal trading services in China. The CSRC will lead implementation, including monitoring, maintaining and updating a list of illegal offshore operators, coordinating investigations and working with overseas regulators. Other agencies will remove online content and apps, investigate suspected crimes, tighten bank account and foreign exchange controls, strengthen customer due diligence and record-keeping by domestic banks, and guide investors toward lawful outbound investment channels including Stock Connect, Qualified Domestic Institutional Investor and Cross-border Wealth Management Connect.
China Securities Regulatory Commission2026-05-09
China Securities Regulatory Commission launches two year crackdown on illegal cross border securities futures and fund business
The China Securities Regulatory Commission, with other agencies and State Council approval, issued a two-year plan to crack down on illegal cross-border securities, futures and fund business and to phase out domestic investor accounts while protecting investor property. It targets offshore institutions operating in China without approval, their domestic affiliates and related online marketing channels, and restricts existing investors to one-way sales and withdrawals before these institutions must fully shut China-facing services. The CSRC will lead implementation and maintain a list of illegal offshore operators.