Asian Diversified Financials "Our thoughts on the impact of tighter cros..."

研报英文原文证据摘录

Asian Diversified Financials "Our thoughts on the impact of tighter cros..."

Global Research

26 May 2026ab

Asian Diversified Financials Equities

ChinaOur thoughts on the impact of tighter cross-

border trading regulations on brokerage Diversified Financial

Dennis Bai

Analyst

dennis.bai@ubs.com

Impact of tighter cross-border trading regulations on brokerage +852-3712 2473

China steps up crackdown on illegal cross-border trading activities (Bloomberg), setting Charles Zhou

a 2-year target to wind down such operations by tightening rules on retail Mainland Analyst

China client (MCC)s' funding and trading activities (Figure 1RegulatoryrequirementsonretailMainlandChinaclients(MC)'sfundingandtradingactivities, Figure 3Historicalregulatorycrackdownoncros-bordertradingactivitiesofMainlandChinainvestors, Figure 4Comparisonofregulatorycrackdownonilegalcros-bordertradingactivities(May2026vs.Dec202)FigureComparisonofregulatorycrackdownonilegalcros-bordertradingactivities(May2026vs.Dec202)). We charles.zhou@ubs.com

expect earnings pressure for FUTU and TIGR from potential AUM outflows amid retail +852-3712 3887

MCC attrition. Over the longer term, clearer policy framework and rapid overseas Wen Chen, CPA

expansion could support valuation re-rating. Leading traditional brokers (e.g., CITICS, Associate

CICC, HTSC, GTHT) with strong cross-border capabilities are well positioned to capture S1460524120002

retail MCC migration, as regulators steer Mainland China investors toward compliant wen.chen@ubs.com

channels such as Stock Connect, QDII, and Cross-border WM Connect. +86-21-3866 8259

Jessica Chan

Traditional brokers: leaders with strong cross-border capabilities to benefit Analyst