China To Ban Trading Of More than 1-M 'Fake' Foreign A-Share Investors
Updated: Jul 1, 2022
As part of a new law to combat "fake foreign capital," China will prohibit more than one million mainland investors from trading onshore shares through stock link programs with Hong Kong, Bloomberg News reported.
Photo Insert: Domestic investors with Hong Kong accounts will no longer be able to purchase A-shares via the northbound trading linkages.
According to the China Securities Regulatory Commission (CSRC), effective July 25, domestic investors with Hong Kong accounts will no longer be able to purchase A-shares via the northbound trading linkages.
Brokers in Hong Kong must stop issuing new trading permits to mainlanders, and investors who are already in violation will be given a one-year grace period before being forced to sell their remaining shares.
China has been attempting to limit stock market speculation by mainlanders who have gambled against giant Chinese IT issues and manufacturers who have been hard hit by the COVID epidemic and poor demand offshore for things created by cheap labor. Although online gambling has been targeted, international gaming activities persist.