China probes brokers in cross-borderprobes brokers in cross-border trade crackdown
China’s market regulator said on Friday it is investigating three major brokers over cross-border trading activities it calls illegal, including Tiger Brokers. The regulator also set a two-year wind-down period in which customers may sell existing holdings and withdraw funds but cannot make new investments, a move that shows Beijing is tightening control over capital leaving the country.
- China has long used capital controls to limit sudden money outflows and stabilize its currency.
- Online brokerages became popular in Asia by making overseas markets easier for retail investors to access.
- Regulators often target broker platforms because they can channel large volumes of cross-border orders quickly.
