China assures offshore accounts won't be liquidated in crackdown

The CSRC emphasized that the safety of investors' assets will remain unaffected by the rectification campaign. Existing accounts will not be forcibly closed, and assets within them will not be subject to mandatory cleanup. Onshore Chinese investors will be permitted to sell assets and withdraw funds from these accounts. However, brokers providing illicit services on the mainland, including through websites and trading software, will have until mid-June to stop opening new accounts, adding positions, or accepting fresh funds, with a full termination of such services expected within two years.

Companies like Tiger, Futu, and Longbridge have already informed their onshore Chinese clients about these upcoming restrictions, while assuring that offshore services will continue. The CSRC reiterated that the policy's intent is to "purify" China's capital markets, safeguard investors, and combat illegal capital outflows. The regulator stated that no country would tolerate illegal activities within its borders, citing serious disruption to market order, increased financial risks, and harm to investors as reasons for the stringent measures. Responding to a query about whether the tightening of capital controls aims to redirect funds into domestic markets, the CSRC noted that Chinese assets are "appealing" and welcomed both domestic and international participation.