Fake account openings and zombie accounts are being cleared; genuine asset holders can rest assured and hold their assets securely. Stricter regulation is a long-term positive for the industry.

Changqiao Securities states that the Hong Kong Securities and Futures Commission and mainland regulatory authorities have issued the latest cross-border securities regulation requirements, standardizing services aimed at mainland investors, covering all overseas financial institutions. The company will steadily promote compliance according to the new regulations, with the scope of cleanup limited to two types of accounts: investment accounts opened with suspicious/fake documents, and zero-balance inactive investment accounts. Accounts that are normally compliant, hold genuine assets and positions are not within the scope of cleanup. There will be zero tolerance for fake account openings, and strict compliance will be enforced.