China says 'illegal' outbound investment crackdown won't lead to forced liquidation
Key takeaways
- The China Securities Regulatory Commission (CSRC) statement is the clearest indication yet that overseas brokerages can continue to offer legitimate offshore services to mainland clients.
- Fears of forced liquidation triggered a sell-off in U.S.-listed Chinese stocks immediately after the crackdown was announced on May 22.
- "Safety of investors assets will not be affected by the rectification campaign," the CSRC said in the statement.
China says 'illegal' outbound investment crackdown won't lead to forced liquidation Police officers patrol outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China February 8, 2024. REUTERS/Florence Lo · Reuters Reuters Mon, June 8, 2026 at 6:27 AM GMT+7 2 min read June 8 (Reuters) - China s crackdown on "illegal" cross-border investment won t lead to mainlanders offshore accounts being closed and assets liquidated forcibly, the securities regulator said, amid investor concerns over the fate of $54 billion worth of assets.
Some savers from mainland China are travelling to Hong Kong and scrambling to explore options to retain their investments in the financial hub, after Beijing s unexpected crackdown last month on "illegal" cross-border securities trading.
The clamp-down and the sanctioning of overseas brokers for "illegally" helping Chinese investors buy shares in foreign markets does not affect their business activities offshore, said the watchdog in response to Reuters queries.