A new regulation that could affect your overseas investments takes effect on July 1

Order No. 837 of the State Council "Regulations on Outbound Investment" will be implemented starting July 1, 2026, just one month from now.

Here are a few key points worth noting:

1. This time, "individuals" are also explicitly included under regulation
Whether it’s companies, organizations, or residents within the country, as long as money or assets are invested abroad, or foreign company equity or interests are obtained, it counts as "outbound investment." Individuals buying U.S. stocks are also covered.

2. Penalties are more severe than fines
Failure to comply with the registration procedures will result in fines of 0.1%–0.5% of the investment amount, and additionally:

· Confiscation of illegal gains (money earned abroad may be confiscated)
· Prohibition from applying for registration again within three years (equivalent to suspending outbound investment eligibility)

Refusal to correct violations may increase fines up to 10% of the investment amount, and orders to cease investment and restrict foreign assets within a deadline.

3. The question arises: how do individuals register when trading U.S. stocks?
Currently, there is no legal registration channel specifically for individuals trading U.S. stocks. The registration systems of the National Development and Reform Commission and the Ministry of Commerce are mainly aimed at enterprises, and supporting rules for individual overseas securities investments are still blank.

The only officially recognized compliant paths are:

· Buying domestic QDII funds (indirect investment in U.S. stocks)
· Investing through the Hong Kong Stock Connect (cannot directly buy U.S. stocks)

As for platforms like Futu, Tiger, etc., regulators have clarified: from May 2026 to May 2028 is a period of concentrated rectification, during which existing users can only sell, but cannot open new positions.

4. Cryptocurrency is not subject to this new regulation
Legally, crypto assets are classified as "virtual commodities," not investment targets, and are not governed by this regulation.

The new regulation is about to be enforced. If you have personal overseas investments or cross-border wealth management operations, it is recommended to reassess compliance paths before July 1, especially if you still have accounts with platforms like Futu or Tiger. $MU $SNDK ‌ ‌