Hong Kong Monetary Authority hits hard: Mainland investors’ investment accounts will be traced back to 2023, and new account holders must prove their funds came from overseas

Mainland customers opening accounts in Hong Kong for stock trading and fund purchasing face全面提高門檻！The Hong Kong Monetary Authority (HKMA) recently issued directives to all registered banks in Hong Kong, implementing three strict additional regulatory measures targeting mainland investors' "investment accounts." Banks are not only required to fully withdraw dormant zero-balance accounts with no activity over the past year but will also conduct retroactive checks back to January 2023 to close accounts opened with forged documents. Additionally, new customers must sign a declaration guaranteeing that the source of funds is "legitimate funds outside mainland China." Currently, some Chinese-funded banks have begun discouraging new account applications.
(Background summary: Bloomberg: China "Restricts Top AI Talent from Leaving," Alibaba and DeepSeek executives forced to surrender passports)
(Additional background: Futu, Tiger Securities plummet 40% before crackdown! China enacts "nuclear-level" regulation: mainland customers can only sell, not buy, starting immediately)

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• "3 Major Additional Measures" for Mainland Customers' Investment Accounts
  • 1. Retroactive check to January 2023, close accounts with forged documents
  • 2. Fully clean up "zero-balance" dormant accounts
  • 3. New accounts require signing a "source of funds outside" declaration
• General savings and "Wealth Management Connect" unaffected

To prevent illegal cross-border capital flows and money laundering risks, the Hong Kong Monetary Authority (HKMA) has officially imposed strict restrictions on mainland investors' investment accounts in Hong Kong.

According to "Cailian Press," regarding recent reports that "some Hong Kong banks require additional declarations for opening investment accounts," the HKMA confirmed on May 27, 2026, that the relevant supervisory circular was officially issued to all registered institutions (banks) in Hong Kong on May 22. This move aligns with the Hong Kong Securities and Futures Commission (SFC), aiming to comprehensively raise account opening standards and prevent illegal cross-border securities activities.

"3 Major Additional Measures" for Mainland Customers' Investment Accounts

Per HKMA's requirements, banks must strictly enforce the following three measures when opening and managing "individual mainland investor" investment accounts using Chinese resident ID cards or passports:

1. Retroactive check to January 2023, close accounts with forged documents

Banks must conduct targeted reviews, focusing on identifying accounts opened from January 2023 onward with suspicious or forged documents (such as ID proofs, proof of accounts at other banks). If verified, the bank will suspend new transactions on the account and require closure within six months. More severely, the customer will be permanently barred from opening accounts at that bank or its affiliates.

2. Fully clean up "zero-balance" dormant accounts

For investment accounts with no assets as of May 22, 2026, and no active customer transactions in the past 12 months, banks must complete a review within three months. Customers must update their KYC (Know Your Customer) information; if unable to do so, the account will be suspended and canceled within six months.

3. New accounts must sign a "source of funds outside" declaration

Future mainland investors opening new investment accounts must provide a written declaration confirming that "all funds used for investment activities and settlement come from legitimate sources outside mainland China." Additionally, fund access is limited to accounts held by the customer at licensed banks in Hong Kong. If illegal or capital control violations are later discovered, the bank will immediately close the account.

General savings and "Wealth Management Connect" unaffected

The HKMA clarified in the document that the scope of affected services is limited to "investment accounts" to prevent market panic. The three additional regulatory measures "apply only to investment accounts."

Routine financial services without investment functions (such as regular savings deposits, payments, loans, and credit cards) are entirely outside the scope of this measure. Moreover, the regulation applies only to "individual customers"; corporate and institutional clients are unaffected. The "Cross-border Wealth Management Connect (Southbound)" scheme promoted by the Guangdong-Hong Kong-Macao Greater Bay Area authorities will continue to operate under existing rules.

It is reported that this strict policy has already caused ripple effects in the banking sector. Some Chinese-funded banks (such as Bank of China Hong Kong) have begun strictly restricting or even "discouraging" new investment account openings for customers holding only mainland ID cards, while foreign banks state they will strictly follow the new compliance procedures.