Non-Bank Financials - China: Regulatory focus on online brokers and impact on other financial institutions

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Non-Bank Financials - China: Regulatory focus on online brokers and impact on other financial institutions

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Non-Bank Financials - China

Regulatory focus on online brokers and

impact on other financial institutions

Industry Overview

Penalty on online brokers and potential impact on others 26 May 2026

We published our report on the recent regulatory penalty by the CSRC and seven other Equity

ministries in China on online brokers, including Futu and Tiger, targeting unauthorized China

cross-border brokerage activities. Questions from investors are mainly about the reasons Non-Bank Financials

for this and what the potential impact could be on other financial institutions, including Michael Li >>

AIA which sells insurance policies to MCVs in Hong Kong. Research Analyst

Merrill Lynch (Hong Kong)

Why the focus on online brokers again? +852m.li@bofa.com3508 7381

In early 2023, the CSRC released the regulations on cross-border brokerage activities, Susie Liu, CFA >>

requiring Futu and Tiger to correct illegal acts in their business, including acquiring Research Analyst Merrill Lynch (Hong Kong)

Mainland China clients and providing brokerage services to them on cross border basis. +852 3508 8456

Both brokers in the past 3 years tightened their account opening rules for Mainland China susie.liu@bofa.com

clients. However, according to some media reports published earlier this year (including EmmaResearchXuAnalyst>>

China Securities and 21st Century Business Herald), the regulators do not appear to be Merrill Lynch (Hong Kong)

+852 3508 8165

completely satisfied with the changes that the brokers have made and may have seen emma.xu@bofa.com

increasing clients acquisition activities in China and fund outflows, through different Winnie Wu >>