Huasheng Securities will restrict mainland clients from opening new positions and adding funds from June 15.
The Hong Kong-based broker will block new securities and fund inflows, while existing users may close positions and withdraw assets.
The move shows how China’s offshore broker crackdown is moving beyond Futu, Tiger Brokers, and Longbridge Securities.
CSRC Pressure Reaches Wider Broker Sector
Huasheng’s notice followed enforcement action by the China Securities Regulatory Commission on May 22 against Futu Securities International, Tiger Brokers, and Longbridge Securities.
The regulator fined the three firms 2.2 billion yuan, or about $324 million, over unlicensed cross-border securities services for mainland investors.
Futu Holdings faces the largest penalty, around $271 million. After the order, Futu and Tiger told mainland clients they could no longer open new positions after June 12.
Huasheng set a cutoff for June 15, even though the CSRC did not name the firm in the enforcement action.
The brokerage said the restrictions reflect regulatory requirements during a two-year rectification period. Its early response suggests other offshore platforms may adjust services before regulators take direct action.
Mainland Clients Keep Exit Rights
Huasheng will allow affected customers to sell existing holdings and move money out of their accounts.
However, mainland-based instructions for new trades, fund transfers into the platform, or securities inflows will stop under the new rules.
The broker said services for clients outside mainland China will continue as normal. It also said client assets remain safe.
The restrictions apply across account types when the trading or transfer instruction originates from mainland China.
Huasheng is smaller than Futu and Tiger, but its decision carries a wider meaning. The firm serves mainland investors seeking access to overseas equities through a Hong Kong-based platform. Its voluntary limits indicate that the offshore brokerage sector is preparing for deeper scrutiny.
Offshore Access Faces New Limits
The crackdown targets platforms that helped mainland investors buy overseas stocks outside approved channels.
Beijing has made clear that offshore investing should move through official programs, including Stock Connect, Wealth Management Connect, and Qualified Domestic Institutional Investor schemes.
The CSRC plan gives affected firms a two-year grace period, with the process expected to end in May 2028.
During that period, mainland clients can wind down positions and withdraw funds, but new investments face growing limits.
Markets reacted strongly after the May 22 penalties. Futu shares fell 26% in one session, while Tiger Brokers declined 23%. Earlier premarket losses exceeded 30%.
Huasheng’s move may signal more changes across Hong Kong, Singapore, and other offshore brokerage hubs.
Investors and market operators will now watch whether more firms follow before the June deadlines.
