On May 22, 2026, the China Securities Regulatory Commission joined seven other central departments to release a special rectification plan targeting illegal cross-border securities businesses. Regulators officially filed investigations against overseas brokerages including Futu Holdings, Tiger Brokers and Longbridge Global for illegally conducting securities trading services for domestic mainland investors without official approval. The new regulatory policy sets a two-year transition period to ensure steady market adjustment and investor protection. During the transition, existing mainland investors can only sell their held securities and are prohibited from conducting new purchases. After the transition period ends, these overseas platforms will completely terminate their domestic service businesses. Notably, authorities will not force users to liquidate positions or cancel accounts, effectively avoiding violent market fluctuations and safeguarding investor assets. The regulatory crackdown targets unlicensed cross-border securities operations that have long bypassed domestic supervision, exposing users to risks such as unregulated capital flows, overseas market volatility and legal loopholes. The move aims to standardize cross-border investment behaviors, block illegal capital outflow channels, and guide domestic investors to conduct overseas investment through official and legal channels. Affected by the policy news, U.S. pre-market trading saw Futu Holdings plunge more than 30% and Tiger Brokers tumble over 45%, reflecting severe market panic. Industry analysts stated that this rectification is a key measure to perfect China’s cross-border financial supervision system. It will eliminate hidden financial risks, standardize the development of cross-border capital business, and promote the long-term healthy and orderly development of the capital market. In the future, relevant departments will continue to strengthen the whole-process supervision of cross-border securities businesses, improve institutional rules, balance financial openness and risk prevention, and build a safer and more standardized cross-border financial service system.