CSRC Strictly Deals with Illegal Cross-Border Business Cases of Institutions Such as Tiger

Recently, the China Securities Regulatory Commission (CSRC) has initiated investigations into the illegal securities business activities of Tiger Brokers (NZ) Limited (referred to as "Tiger"), Futu Securities International (Hong Kong) Limited (referred to as "Futu"), and Changqiao Securities (Hong Kong) Limited (referred to as "Changqiao") and their related entities both domestically and overseas, and has issued a notification of administrative penalties. Tiger, Futu, and Changqiao and their related entities domestically and overseas have conducted securities trading marketing and promotion activities, processed trading instructions and provided related securities services in China without approval from the CSRC, without obtaining licenses to operate securities brokerage business or securities margin trading and securities lending business. This violates the provisions of article 120 of the Securities Law, constituting illegal operation of securities business. Additionally, the three institutions and their related entities domestically and overseas have also violated the provisions of article 97 of the Securities Investment Fund Law and article 63 of the Futures and Derivatives Law, constituting illegal engagement in public fund sales business and illegal operation of futures brokerage business. The above-mentioned illegal cross-border business activities violate the laws and regulations of China's securities, funds, and futures, disrupt market order, and must be resolutely cracked down on. In accordance with the provisions of article 202 of the Securities Law, article 136 of the Securities Investment Fund Law, and article 132 of the Futures and Derivatives Law, the CSRC intends to confiscate all illegal gains of Tiger, Futu, and Changqiao and their related entities domestically and overseas, and impose severe penalties in accordance with the law. The parties involved have the right to make statements, defend themselves, and request a hearing. The CSRC will fully consider the opinions of the parties involved and make administrative penalty decisions in accordance with the law. In the next step, the CSRC will continue to resolutely implement regulatory requirements with sharp teeth and edges, crack down on illegal activities of foreign institutions conducting securities business illegally in China, and make efforts to maintain the order and stability of the capital market. This article is reprinted from the "CSRC Announcement" WeChat official account; Edited by GMTEight: Chen Xiaoyi.