Tiger Brokers Halts New Mainland China Buy Orders, Reports $26.9M Q1 Loss

Following China's latest crackdown on illegal cross-border securities activities, Tiger Brokers' parent company, UP Fintech Holding Limited (NASDAQ: TIGR),  has announced that starting June 12, 2026, mainland China clients will no longer be able to open new positions or add to existing holdings. Only selling and position-closing transactions will be allowed. The company will also suspend inbound fund transfers from mainland China while continuing to support withdrawals.

The move comes after Chinese regulators unveiled a two-year campaign aimed at eliminating unauthorized cross-border securities, futures, and fund businesses. Under the new rules, offshore brokers are prohibited from providing mainland investors with new buying and deposit services.

The regulatory pressure has already taken a financial toll. Tiger reported a net loss of $26.9 million for the first quarter of 2026, compared with a profit of $30.4 million a year earlier. The primary reason was a regulatory penalty imposed by Chinese authorities, who confiscated approximately RMB103 million in illegal gains and levied fines of about RMB308 million, totaling roughly RMB411 million ($59.7 million).

Despite the loss, Tiger's business remained operationally strong. First-quarter revenue rose 26.3% year-over-year to $154.9 million, driven by growth in commission, interest, and wealth management income.

Tiger said it had already stopped opening new accounts for mainland Chinese residents in 2023 and shifted its focus to overseas markets. As of the end of the first quarter, mainland China clients accounted for about 10% of total client assets.

The company continues to see growth in Singapore and Hong Kong, adding 28,900 funded accounts during the quarter and recording a record $2.9 billion in net client inflows. Total client assets stood at $58.9 billion at the end of March.