Longbridge halts new trades, deposits for mainland clients amid crackdown

Longbridge Securities has announced compliance adjustments for clients accessing its platform from mainland China, effective June 12, following the China Securities Regulatory Commission's two-year rectification period requirements.

The adjustments will only allow selling, closing positions and fund withdrawals. New position opening, adding positions and fund deposits will not be permitted.

Longbridge said its multi-market operations remain normal and client assets are fully protected. The adjustments do not affect services provided to existing investors outside mainland China.

The CSRC last month launched investigations into Tiger Brokers, Futu and Longbridge for illegally operating securities businesses in the mainland, imposing penalties including confiscation of all illegal gains. Eight government departments, including the central bank and the financial regulatory administration, have jointly issued a two-year rectification plan to thoroughly clean up the illegal legacy business of overseas institutions.

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