Huasheng Securities Joins Futu, Tiger in Restricting Mainland China Clients

Huasheng Securities, a platform for cryptocurrency and overseas stock investing, is scaling back services for clients in mainland China as Chinese authorities widen a crackdown on offshore brokerages. The move follows Futu, Tiger Brokers and Longbridge, which have already wound down their mainland China businesses.

BlockBeats reported on June 6 that Huasheng Securities told customers it will adjust service policies for mainland China investor accounts starting June 15.

Under the notice, users in mainland China will no longer be able to make new purchases or add to positions in any products, including stocks. They will only be able to sell or liquidate existing holdings. Deposits of funds and securities will also be suspended, while withdrawals and asset transfers will remain available.

Huasheng Securities said the measure is meant to comply with industry regulatory requirements tied to a two-year rectification period and support the healthy development of cross-border securities business. It added that overseas services for existing investors will continue and that client asset safety will not be affected.

The change means mainland China clients can continue to view, hold and sell existing assets, but they will be barred from bringing in new funds or making new investments.