The China Securities Regulatory Commission, with State Council approval and together with seven other agencies, has issued an implementation plan for a comprehensive clean-up of illegal cross-border securities, futures and fund business. The plan targets overseas institutions that illegally serve domestic investors and sets a two-year concentrated rectification period to fully shut down illegal activity while steadily clearing existing business. The scope covers overseas institutions engaged in illegal cross-border business, domestic affiliated or cooperating entities that assist them, illegal intermediaries that solicit domestic investors, and internet platforms or online self-media that publish unlawful information. Related breaches of foreign exchange, anti-money laundering, cybersecurity, information management and personal information protection rules are also within scope. The measures ban overseas institutions from conducting marketing and solicitation in China and from providing account opening, order handling, trading and fund transfer services. Domestic entities are barred from supporting those activities through marketing, websites, trading software, operations or customer service. During the two-year rectification period, overseas institutions may not provide illegal purchase transactions or inbound fund transfers for existing investors in China and may only process one-way sales and outbound fund transfers. After that period, they must shut China-facing websites, trading software and related services and stop providing illegal trading services to existing investors in China. The plan also establishes a standing inter-agency mechanism for monitoring, case referrals and removal of related online platforms, advertising and information. Authorities will interview and inspect offending institutions, open criminal investigations where suspected, require the disposal and separation of illegal domestic business, supervise domestic banks that provide account services for illegal cross-border investment, strengthen compliance reviews of outbound foreign exchange transfers and crack down on underground banking channels. The China Securities Regulatory Commission said it will work with the other agencies, local governments and overseas regulators to implement the campaign, handle investor complaints and improve the framework that directs domestic investors to lawful overseas investment channels.
China Securities Regulatory Commission2026-05-22
China Securities Regulatory Commission and seven agencies launch two year crackdown on illegal cross border securities futures and fund business
The China Securities Regulatory Commission, with State Council approval and seven other agencies, issued a two-year plan to clean up illegal cross-border securities, futures and fund business targeting overseas institutions serving domestic investors. The plan bans marketing, account opening, trading and fund transfer services for Chinese clients, requires wind-down of existing business, and prohibits domestic entities from providing supporting infrastructure. It also creates an inter-agency mechanism to monitor and investigate cases, remove related online content, supervise banks’ account and foreign exchange services, and strengthen lawful overseas investment channels.