HONG KONG: Tiger Brokers will bar China-based investors from adding to their positions from Jun 12 when they are physically on the Chinese mainland, the Singapore-headquartered trading firm said in a notice to clients on Tuesday (Jun 2).
China had told Tiger and other online brokers Futu and Longbridge to wind down such accounts, which it says are illegal under new tighter regulations introduced on May 27.
Tiger’s announcement marks one of the first concrete steps by the brokerage firms to comply with Beijing’s tougher rules.
Tiger said in its notice that investors will still be able to buy or sell securities from the existing accounts when they travel offshore.
Futu’s chief executive said during an earnings call last week that mainland investors will be restricted from making new deposits or purchasing new securities, though he did not say when the measure would come into effect.
Futu has stopped opening new accounts for mainland Chinese identity holders. At the end of the first quarter, mainland investors accounted for 13 per cent of its customer base.
The firms would be given a two-year grace period to wind down illegal activities, the Chinese regulator said last month.