Key facts
- China is shutting down a loophole that allowed mainland investors to trade U.S. and Hong Kong stocks.
- This offshore trading occurred via internet brokerage apps, bypassing capital controls.
- The grey market facilitated multibillions of dollars in transactions.
- This practice had been ongoing for more than a decade.
China has effectively closed a multibillion-dollar grey market that allowed millions of investors on the mainland to trade U.S. and Hong Kong stocks by using internet brokerage apps. This practice had been in place for over a decade, enabling investors to circumvent the country's strict capital controls.
The move signals a significant tightening of financial regulations and a potential shift in how Chinese citizens can access international markets.