Detailed interpretation of the State Council's regulations on foreign investment - Don't scare yourself for now Early this morning, I saw my friends discussing State Council Decree No. 837 of the People's Republic of China, which is the "Regulations of the State Council on Foreign Investment". I noticed that many of them have some misunderstandings, especially those who like to scare themselves or others. First of all, the conclusion is that there is currently no impact on individuals. At the individual level, there is no new unified system for reporting foreign investments, and no implementation measures have been announced for individuals who must report their investments in US stocks or cryptocurrencies after July 1st. It's not that it won't be implemented, it's just that the details of this kind of reporting haven't been released yet, and it's uncertain whether it will be released on July 1st. This is a major premise. The State Council document only states: The specific management measures for individual Chinese residents' outward investment shall be formulated by the investment and commerce departments of the State Council. Of course, this does not mean that it has no impact at all. Politically, for the first time, China has officially included individual overseas investment by residents in the State Council level framework for foreign investment, and has clearly stated that personal management measures will be formulated in the future. This is to upgrade the "overseas investment supervision logic" that was originally scattered in the National Development and Reform Commission, Ministry of Commerce, State Administration of Foreign Exchange, China Securities Regulatory Commission, Cyberspace Administration of China, and anti money laundering system into a basic framework at the State Council level. That is to say, if officially implemented, in the future, whether it is the US stock market ETF、 Hong Kong assets RWA、 On chain securities or partially encrypted assets, as long as they ultimately correspond to overseas assets and income rights, may be included in the same set of foreign investment regulatory logic. That is to say: Individual residents' outward investments can be included in management in the future. And the basis of this logic should be cross validation based on CRS, CARF (China does not participate, but Hong Kong participates), anti money laundering, foreign exchange, bank and securities KYC data. Because without "verification" information, it can be quite difficult to rely solely on self declaration. Another very important thing, which I have been reminding my friends for a long time, is that the State Council's regulations on foreign investment mainly apply to investors and funds within China. In other words, it restricts Chinese people living in China. But if a person has been living overseas for a long time, has local tax residency status, local legal income, local bank accounts, and invests with overseas legal income, it is not the same as diverting domestic funds overseas. The new regulations themselves are not specifically aimed at cracking down on the normal overseas investment of Chinese people overseas. The focus is on the situation where domestic funds, domestic accounts, domestic services, and domestic income rights are diverted through various means. After it takes effect, the key for ordinary people is to distinguish whether the investor is a resident of China or a domestic enterprise (the enterprise itself has a declaration channel, mainly ODI). If it is a domestic individual buying US stocks, the most compliant path is still through channels allowed by the country, such as QDII, fund interconnection, and overseas asset products issued by qualified domestic institutions. Opening accounts through overseas brokerage apps and conducting remote trading of US stocks within China has already been under scrutiny. The China Securities Regulatory Commission's May document explicitly prohibits overseas institutions from providing cross-border securities services such as account opening, trading instructions, and fund transfers within China, and also prohibits individuals or institutions from assisting domestic investors in opening accounts in violation of regulations. If you already have overseas identity, overseas income, and overseas bank accounts, such as being in Singapore and a local tax resident, and investing in US stocks with legal overseas income, the key is to provide proof of funding source, tax resident status, securities KYC, CRS declaration, etc. The new regulations themselves are not specifically aimed at cracking down on overseas Chinese, but rather at preventing domestic funds from bypassing to buy overseas assets. If it is a domestic individual buying cryptocurrency, it will be more complicated. China has strict restrictions on virtual currency trading and overseas exchanges providing services to domestic residents. In 2026, there will be further regulatory actions to prevent and handle virtual currency risks. After the new regulations come into effect, if you use stablecoins, exchanges, or on chain wallets to buy overseas equity RWA、 Token securities and overseas funds may essentially be penetrated into domestic funds for external investment. So the biggest impact of this document on individuals is not immediate restrictions, but the formal inclusion of personal overseas asset allocation into the national regulatory framework for foreign investment. The rules have not been fully implemented yet, but in the future, whether it is the US stock market ETF、RWA、 On chain securities are still partially encrypted assets, and as long as they ultimately correspond to overseas assets and income rights, they are more easily managed according to the logic of external investment. Speaking of people, departments or methods that used to have no system management are now more clear. For pure domestic funds and pure domestic identities, the rules have become stricter. Overall, from the current perspective, it is not necessary for individuals to immediately report their purchases of US stocks and cryptocurrencies after July 1st. Instead, at the State Council level, individual residents' outward investment has been placed under the management framework, becoming a "legal basis". It still depends on whether the National Development and Reform Commission, Ministry of Commerce, State Administration of Foreign Exchange and other departments will continue to issue detailed rules and reporting plans for personal foreign investment. Bitget is here, VIP! Crypto、 US shares CFD， Global Advantage One Stop Layout