According to the mainland media "Caixin", the China Securities Regulatory Commission will prohibit mainland investors outside China from participating in the stock interconnection mechanism, including the opening of "Shanghai-Shenzhen-Hong Kong Stock Connect" accounts and the prohibition of trading A shares through such accounts. The move aims to combat "fake foreign capital", improve the "Shanghai-Shenzhen-Hong Kong Stock Connect" mechanism, and regulate the return-trading behavior of mainland investors.
The report pointed out that the relevant investors and accounts under the new regulations will eventually be completely cleared.
The new regulations will be implemented from the 25th of next month, and a one-year transition period will be set up to make different settlement arrangements for different mainland investors.
The CSRC mentioned earlier that in recent years, some mainland investors have opened securities accounts in Hong Kong and have permission for northbound trading to trade A shares through the "Shanghai-Shenzhen Stock Connect". %, the number of investors is about 1.7 million, but most of them have no actual transactions, which is also inconsistent with the original intention of introducing foreign capital in the “Shanghai and Shenzhen Stock Connect”, and most of these investors have opened mainland securities accounts and can directly participate in A-share transactions , the two channels of trading have the risk of cross-border illegal activities, and it also creates the impression that there are many so-called "fake foreign capital" in northbound transactions, which is not conducive to the smooth operation and long-term development of the "Shanghai-Shenzhen-Hong Kong Stock Connect".