ISSUING AUTHORITIES:

China Securities Regulatory Commission

Ministry of Industry and Information Technology

Ministry of Public Security

People’s Bank of China

State Administration of Market Regulation

National Financial Regulatory Administration

Cyberspace Administration of China

State Administration of Foreign Exchange

DATE OF ISSUANCE:

May 22, 2026

EFFECTIVE DATE:

May 22, 2026

On May 22, 2026, the China Securities Regulatory Commission (CSRC), together with seven other ministries—including the Ministry of Industry and Information Technology, Ministry of Public Security, People’s Bank of China, and State Administration of Foreign Exchange—jointly issued the Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Business Activities (the “Plan”), with State Council approval.

The two-year concentrated rectification campaign targets illegal cross-border operations by overseas securities, futures, and fund institutions targeting Chinese mainland investors. Key measures include:

● Banning new illegal activities: Overseas entities are prohibited from marketing, account opening, order execution, or fund transfers within China. Domestic collaborators (platforms, intermediaries, affiliates) face restrictions on providing support services.

● Orderly wind-down of existing business: A two-year transition period allows only one-way sell orders and fund outflows for legacy clients. Full shutdown of websites, apps, and services follows.

● Enhanced enforcement: Coordinated monitoring, investigations, criminal referrals, and strengthened forex/anti-money laundering controls. Investor assets are protected, with emphasis on orderly account handling and risk education.

The initiative aims to eliminate unlicensed operations, purify the market ecosystem, and channel investors toward regulated, legitimate cross-border channels (e.g., QDII, Stock Connect programs). It reinforces China’s commitment to comprehensive financial supervision and investor protection amid ongoing capital market opening.

Firms with cross-border exposure should review client onboarding, compliance controls, and existing arrangements promptly. Legal counsel can assist in navigating the implications.

Reference:

中国证监会等八部门联合印发《综合整治非法跨境证券期货基金经营活动实施方案》