Key facts
- Two cross-border investment blowups occurred in the summer of 2026, affecting investors from mainland China and Hong Kong.
- A Shanghai woman lost over 10 million yuan ($1.5 million) in savings linked to ZD Group's promotion of Hong Kong IPOs.
- Thousands of investors reported their gold-trading accounts on Star Bridge Capital's platform were wiped out on Aug. 20.
- The incidents highlight risks in the expansion of cross-border investing between mainland China and Hong Kong.
Two cross-border investment incidents in the summer of 2026 have raised concerns about the risks associated with the rapid expansion of investment between mainland China and Hong Kong. These events have prompted investigations by Hong Kong police.
One incident involved ZD Group, which promoted Hong Kong IPOs. A Shanghai woman in her 30s reported losing over 10 million yuan ($1.5 million) of her savings in an investment linked to these promotions. She has been shuttling between law offices and police stations in Hong Kong.
Around the same time, investors using the platform of international brokerage Star Bridge Capital reported that their gold-trading accounts were wiped out within seconds on Aug. 20 due to what they described as a cascade of abnormal liquidations. Investors estimate that between 2,000 and 3,000 people may have been affected by this event.