The end of the "gray account opening era" for Hong Kong and US stocks, where can your money go now?

Original | Odaily Planet Daily (@OdailyChina)

Author | jk

On May 24th, in Tsim Sha Tsui, Hong Kong, the atmosphere was so quiet it felt a bit unsettling.

A week ago, this was still the “Account Opening Street” for mainland investors, with broker booths and mobile trading vans lined up, crowds bustling. Zero commission on Hong Kong stock accounts, free stocks, support for IPO subscriptions, relaxed address proof requirements… To attract mainland clients, brokers almost lowered the thresholds to the floor.

However, just seven days later, the doors slammed shut. Now, mainland clients wanting to open a Hong Kong stock account must not only sign a written declaration promising funds come from overseas and that materials have never been forged, but after signing, they might still be rejected.

The turning point began on May 22nd. Simultaneous regulatory actions from both sides directly impacted millions of mainland investors investing in overseas markets through Hong Kong brokers.

How fierce is this regulatory storm? What are the real experiences of mainland residents opening accounts in Hong Kong now? What compliant channels remain for overseas asset investment? Odaily Planet Daily breaks it down for readers.

1. Cross-strait joint effort ends the “gray channel” for Hong Kong and US stock investments

On May 22nd, Hong Kong and mainland regulators almost simultaneously took action, striking from both north and south.

The Hong Kong Securities and Futures Commission (SFC) issued a strongly worded circular after reviewing the account opening procedures of 12 brokerage firms. The document pointed out multiple major deficiencies: insufficient due diligence during account opening, acceptance of suspicious or forged documents, and clear weaknesses in managing cross-border agency relationships with overseas intermediaries. The SFC explicitly stated these accounts might be used for illegal trading, with money laundering risks not to be ignored.

For mainland investors, the circular’s appendix listed additional “three-piece” requirements: new accounts must submit a written declaration, and deposits, withdrawals, and settlements can only be made through qualified bank accounts opened in the client’s name. The core contents of the declaration include: confirming all investment funds come from legal sources outside mainland China, that the account has never been closed due to suspicious documents, that any changes must be reported within 7 business days, and agreeing to disclose relevant information to law enforcement agencies.

The SFC requires all licensed institutions to conduct immediate self-inspections, close accounts opened with suspicious or forged documents, and dormant accounts with zero balance and no transactions for 12 months. Senior management is explicitly named, and those with serious compliance failures may face regulatory and law enforcement actions.

Almost simultaneously, the China Securities Regulatory Commission (CSRC), together with eight ministries (MIIT, Ministry of Public Security, PBOC, SAMR, CBRC, CAC, SAFE, and NDRC), officially issued the “Implementation Plan for Comprehensive Rectification of Illegal Cross-border Securities, Futures, and Fund Activities”—setting a two-year concentrated rectification period, during which existing accounts can only sell or transfer out funds, with no new accounts allowed. Administrative penalties for illegal operations by entities like Tiger Securities, Futu Securities, and Changqiao Securities are also announced in advance. The scope, intensity, and enforcement resolve of this combined action are rare in recent financial regulatory history.

These two documents, from different regulatory systems, point to the same issue: the long-standing gray area where many mainland investors used Hong Kong brokers to invest in Hong Kong and US stocks is officially coming to an end. This time, the regulators are serious.

But to understand why this crackdown is so resolute, we must look back at the past two to three years—how “wide” was this channel?

From 2023 to early 2025, Hong Kong stocks and US stocks surged in turn, with many new IPO opportunities in Hong Kong fueling a sharp increase in demand from mainland investors. At that time, internet brokers like Futu, Tiger, and Changqiao, with smooth Chinese-language apps, low or zero commissions, and support for RMB deposits, aggressively penetrated the mainland market. Some Hong Kong brokers didn’t require address proof or didn’t verify addresses substantively, and some even accepted stablecoins (USDT) for deposits. Opening an account was almost just a click away.

As early as July 2016, the CSRC issued risk warnings, specifically mentioning Tiger Securities, Futu Securities, and others providing offshore securities trading services. By late 2022, the CSRC launched special rectification efforts targeting these offshore brokers. However, the effects were limited; existing accounts continued to operate normally, and some platforms, even after rectification, found ways to continue accepting new mainland clients.

This time, the authorities are no longer holding back. The policy focus has shifted from restricting new accounts to rectifying existing ones—all previous space has been explicitly closed off by regulators.

2. “Written Declaration” in hand, account opening still fails

With the new rules, the fastest to act already bought tickets to Hong Kong, but account opening is not smooth. Over the past week, social media has circulated many photos titled “Mainland Investor Written Declaration,” all from mainlanders who personally visited Hong Kong broker offline stores trying to open accounts.

Blogger AB Kuai.Dong described a friend’s experience: the friend traveled to Hong Kong specifically to apply for a US/HK stock account at Yingli Securities’ store, being asked to sign the “Mainland Investor Written Declaration”, filled out all materials, waited over an hour, but was still told “account review failed”. Blogger Simon also recorded similar experiences: a friend walked in to open an account, signed the declaration, waited over an hour, and was ultimately rejected.

From multiple posted declaration texts, the content aligns closely with the requirements in the SFC circular appendix, indicating brokers have quickly implemented the new regulations.

Notably, signing the declaration does not guarantee approval; refusing to sign makes account opening impossible. Blogger Li Zhi offered a straightforward interpretation: brokers, by having clients sign this declaration, are doing two things: first, shifting compliance responsibility—if something goes wrong, they can say “the client declared the funds are legal”; second, screening clients—since most mainlanders trading Hong Kong and US stocks via Hong Kong brokers are already in a legal gray area, this declaration requiring them to confirm that funds come from overseas is itself a gatekeeper.

A report by CaiLianShe on May 27 confirmed this phenomenon: nearly all Hong Kong brokers now require clients to sign a declaration of legal fund sources when opening accounts through offline bank channels starting May 26. An employee of a Hong Kong foreign bank also confirmed the addition of this requirement.

The new document is called “Cross-border Disclosure Declaration (Applicable to Investment Account Opening).” According to the sample, the core content states: the applicant must confirm that “all funds supporting investment activities and related settlements come from legal sources outside mainland China”; and remind mainland residents that the account services are only for investors residing in Hong Kong (e.g., living or working there), and that funds must be legal and compliant.

The document also states that, to comply with Hong Kong regulatory requirements, banks may request proof of funds; failure to provide such proof could lead to service denial or termination of existing accounts. Importantly, this affects not only new accounts but also those opened between May 23-25, 2026, which must re-sign the new cross-border declaration—no transitional period is provided.

3. Who can still open accounts? Existing compliant channels overview

This tightening directly shut down the mainland access points of major online brokers, but not all channels are closed.

Brokers that have fully ceased accepting new mainland clients: Futu Securities, Tiger Securities, Changqiao Securities, Huasheng Securities. These four have closed new account openings; some existing accounts still trade normally but are only allowed to sell, with a two-year transition period before full withdrawal.

Currently, a few licensed Hong Kong brokers still retain limited channels for mainland residents (as of publication, this situation is dynamic):

Yingli Securities is among the few still supporting direct account opening for mainland users. It holds Hong Kong SFC licenses No. 1, 4, and 9, with a US subsidiary registered with the SEC and regulated by FINRA, making its compliance system relatively sound. However, recent social media feedback indicates that after the new regulations, Yingli’s account approval process has tightened significantly, with many walk-in applications failing. Success largely depends on whether applicants can genuinely meet the “funds come from outside mainland China” condition.

Fosun Wealth and Zhi Fu Securities are two other brokers still offering channels for mainland users.

Some bloggers claim that Fosun’s latest official statement states that the new policy no longer requires address proof but mandates using VPN or visiting Hong Kong in person; users with Hong Kong virtual bank cards like ZhongAn, Tiansheng, HSBC, etc., must have their location set to Hong Kong during application. Odaily has confirmed with Fosun that this claim is a rumor; account opening still requires compliance with the above policies.

For users with overseas status (students, work visa holders, permanent residents abroad), conditions are relatively relaxed, but proof of overseas funds is still required.

Opening an account is just the first step; how to transfer money in is equally a core constraint of the new regulations.

The SFC circular explicitly states that deposits, withdrawals, and settlements for mainland investor accounts must only be made through accounts opened in the client’s name at licensed banks in Hong Kong or qualified jurisdictions. Methods like third-party transfers, friend transfers, or USDT deposits to bypass foreign exchange controls are explicitly blocked. This means that previously used methods like currency exchange shops, proxy transfers, or USDT deposits are no longer compliant.

In practice, successful deposits require holding a real-name Hong Kong bank account. Virtual banks like ZA Bank and Tiansheng support FPS fast transfers, allowing normal deposits into broker accounts; some brokers (like Yingli Securities) support quick deposit via eDDA linked to ZA Bank. Therefore, for users without a Hong Kong bank account, opening a Hong Kong bank card beforehand has become an essential step in the process.

Overall, after May 2026, the compliant paths for mainland investors to trade Hong Kong and US stocks will be significantly narrowed but not entirely closed. Based on current conditions, several routes remain viable:

Most reliable path: compliant identity, compliant fund channels, and a Hong Kong bank account. Students, overseas work visa holders, Hong Kong and Macau residents with overseas proof documents, who meet the “funds come from outside mainland China” condition, can still open accounts with licensed brokers like Yingli, Fosun, or Zhi Fu. Tourists face higher failure risks, especially regarding fund sources.

Policy-compliant channels: Hong Kong Stock Connect, QDII, Cross-border Wealth Management Connect. These are the directions regulators hope to guide funds into. Although with limits on products and quotas, they are fully compliant, and affected mainland investors’ funds are expected to gradually shift into these channels.

On-chain options: Platforms like Hyperliquid, xStocks offer technological alternatives. For users able to meet platform requirements, these are options. However, such on-chain products have clear regulatory boundaries. Recently, many projects offering Hong Kong stock crypto products have announced they will cease such offerings in response to recent Hong Kong regulations. Most of these products do not accept mainland Chinese users, making them more suitable for overseas residents.

Conclusion: Tightened significantly, but opportunities still exist

This crackdown is a release of long-standing accumulated conflicts. Hong Kong brokers’ unchecked expansion into mainland clients over recent years brought substantial user growth but also created many compliance risks—fake documents, unclear fund sources, dormant accounts being exploited, etc. The synchronized regulatory actions send a clear signal: the era of gray profits from this channel is over.

For mainland investors still wanting exposure to Hong Kong and US stocks, the road ahead will be more challenging, but compliant options remain. The choice depends on personal identity, risk appetite, and self-assessment of legal boundaries. Regardless, before signing any declaration, be fully aware: once signed, legal responsibility falls on oneself.

(Odaily note: This article synthesizes official circulars from the Hong Kong SFC, announcements from the mainland CSRC, reports from Caixin, Yicai, and social media firsthand information. For informational purposes only; not investment advice.)