China has prohibited unlicensed overseas brokerages from serving or opening accounts for new domestic investors, a spokesperson for the China Securities Regulatory Commission said on Wednesday.

Domestic investors who have already opened accounts with unlicensed overseas brokerages remain permitted to conduct transactions, but they should abide strictly by China's foreign exchange control regulations when transferring more funds to overseas accounts, the spokesperson said.

In December 2022, the commission said that FUTU Holdings Ltd. and UP Fintech Holding Ltd. had been conducting illegal financial activities in China as they are not licensed to operate in the country, and they have been ordered to rectify their practices.

In January, the commission published measures for the management of the securities brokerage business, pledging to strengthen the daily supervision of illegal cross-border brokerage operations.

Next, the commission will push ahead with the rectification of illegal business operations, maintain market order, and protect the legitimate rights and interests of investors, the spokesperson said.

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