China CSRC Plans to Confiscate All Illegal Gains from Tiger Brokers, Futu and Longbridge

On May 22, the China Securities Regulatory Commission announced plans to impose strict penalties on the offshore and onshore entities linked to Tiger Brokers, Futu Securities and Longbridge Securities over alleged illegal cross-border securities business activities in mainland China.

According to the regulator, the three firms did not obtain the required mainland licenses for securities brokerage, margin financing or related financial services. Despite this, they allegedly used affiliated domestic entities, mobile apps and online platforms to provide mainland Chinese investors with services such as overseas stock account opening, order processing and fund transfers involving Hong Kong and U.S. equities.

The regulator stated that the activities may have violated multiple Chinese financial laws, including the Securities Law.

On the same day, the China Securities Regulatory Commission and seven other government agencies jointly released a two-year campaign plan aimed at eliminating illegal cross-border securities, futures and fund business operations.

Under the new plan, starting from May 2026, affected offshore brokers will no longer be allowed to provide mainland investors with “buy” trading functions or fund deposit services. Existing users will only be permitted to sell holdings and withdraw funds during a transition period running until May 2028 — a policy widely described as “out only, no new inflows.”

After the transition period ends, the platforms will be required to shut down mainland-facing websites, trading apps and related servers.

Authorities emphasized that investors’ existing accounts, stocks, funds and cash assets will not be forcibly liquidated or canceled, and that investor rights and asset safety will remain protected during the rectification process.

The announcement triggered sharp market reactions. Shares of UP Fintech Holding, the parent company of Tiger Brokers, fell as much as 45% in pre-market trading in the United States, while Futu Holdings dropped more than 30%.