China Fines 3 Online Brokerages Over $330 Million as It Tightens Stock Research Controls
Updated
Updated · South China Morning Post · May 29
China Fines 3 Online Brokerages Over $330 Million as It Tightens Stock Research Controls
2 articles · Updated · South China Morning Post · May 29
$330 million-plus in fines and confiscated illegal gains hit Longbridge Securities, Tiger Brokers and Futu Holdings for operating in mainland China without required licences.
The crackdown came as the Securities Association of China added a new 2025 assessment criterion for broker research: helping “tell China’s stock market story well” and supporting national policy goals.
Brokerage research units are also being pushed to act as “market think tanks,” with regulators seeking more concrete output in areas including technology and green finance.
The twin moves show Beijing tightening oversight of both market access and securities research as it tries to shore up domestic equity confidence and limit capital outflows.
With a $330M crackdown on online brokers, has China permanently sealed the escape route for domestic capital?
As Beijing mandates positive market stories, can its stock market rally defy the nation's severe property crisis?
China Targets HK$250 Billion in Cross-Border Investments: 2026 Crackdown on Futu, Tiger Brokers, and Long Bridge
Overview
In May 2026, the China Securities Regulatory Commission (CSRC) took decisive action against major overseas brokers like Futu, Tiger Brokers, and Long Bridge for illegally offering mainland Chinese investors access to overseas stock trading platforms. This crackdown follows the CSRC’s earlier clarification in December 2022 that such activities were illegal, leading to an initial clampdown and restrictions on expanding operations or opening new accounts. The recent penalties, which also target UP Fintech, include confiscating illegal gains and a two-year period for brokers to rectify their operations, highlighting China’s ongoing efforts to tighten capital controls and ensure regulatory compliance.