Central joint crackdown on three major securities firms: Hong Kong and US stock market 'illegal channel' clearance storm hits Recently, multiple central departments have joined forces to comprehensively crack down on illegal cross-border stock trading channels, with three major mainstream Hong Kong and US stock brokers including Tiger Brokers, Futu, and Longbridge being targeted for clearance. This action marks the official end of the era of underground cross-border stock trading that has long been focused on selling without buying. 1、 Core Policy Points 1. Transitional period arrangement (0-24 months) Stock accounts only allow selling and not buying; • Can only sell stocks → withdraw funds → return to the domestic market; Prohibit new account opening, new solicitation, and new marketing promotion; After the two-year transition period ends, there will be a complete zero tolerance within the country, and violators will face heavy penalties. 2. Implementation rules for new and old users New users: Account opening, deposit, and purchase have all been blocked, and illegal cross-border channels have been completely closed. Old users are allowed to sell and transfer funds, but related services will be completely shut down after two years. Core logic: Overseas securities firms do not have domestic licenses, and the era of underground cross-border stock trading has officially ended. After the end of the transition period (after May 2028) Overseas securities firms must shut down their domestic websites APP、 All access nodes such as servers; The domestic end cannot trade or place orders, and the account itself is not forced to be cancelled, but there is no entry point in the domestic end. In essence, achieving complete expulsion from the domestic market. 2、 The impact of this wave of clearance on domestic investors short-term: Cross border capital inflows, short-term market liquidity benefits; Compliance securities firms (QDII, cross-border wealth management platform) will receive more attention for their legitimate models. metaphase: The illegal outflow channel has been blocked, and funds are expected to flow back into the compliant domestic market. The incremental funds of A-shares are expected. long-term The purification of market ecology and the reduction of financial risks guide investors towards rational and compliant investment methods, which is beneficial for long-term healthy development. 3、 Investor Response Strategy Suggestions 1. Overseas account processing: Utilize the two-year transition period to gradually sell and transfer funds in batches, prioritizing the security and liquidity of funds. 2. Cross border investment: Abandon illegal channels and only use legitimate channels (QDII, cross-border wealth management channels, and other licensed institutions). 3. A-share opportunities: Focus on beneficiary sectors such as compliant securities firms, big finance, and high dividends. The return of funds and purification of market ecology will provide long-term support for high-quality assets. 4. Opportunities in the cryptocurrency industry; Clearing out accelerated funds from traditional illegal channels to encrypted RWAs such as Ondo+HYPE, providing flexible US stock exposure and DeFi returns, but prioritizing compliance and only suitable for investors with strong risk tolerance as a supplement. PS: This central joint rectification is not a simple "patching", but a systematic action to fundamentally cut off the unlicensed cross-border stock trading channel. It not only protects investors from illegal platform risks, but also introduces more compliant funds to the domestic capital market, reflecting the policy orientation of "strict supervision and promotion of standardization". For ordinary investors, compliance is the biggest moat. In the future, Hong Kong and US stock investments can still be conducted through legitimate licensed channels, but the "gray area" no longer exists.