A senior official of the People's Bank of China wrote that some Chinese brokers' foreign agency subsidiaries provided "illegal" cross -border financial services to domestic investors.About three months ago, he questioned the legality of the cross -border Internet brokerage business.
According to the China Financial Magazine, Sun Tianqi, the director of the Financial Stability Bureau of the People's Bank of China, wrote on Tuesday that some Chinese brokers' subsidiaries (holding overseas licenses) and Chinese banks (holding foreign banks)There are overseas licenses) cooperation to use the app to provide silver -type transfer services, so that domestic customers can participate in overseas stock investment.
The article states that in terms of specific operations, domestic investors are remotely opened by foreign securities firms through the APP, and foreign securities companies apply to overseas banks to apply for the same name account.After domestic investors handle foreign exchange purchase (generally falsely reported for private tourism, etc.) and remitted to overseas bank accounts, the APP shows the amount of accounts for domestic investors to trade.
He wrote in the article that because the parent company's Chinese -funded securities firms are licensed institutions in the country, this model is more confusing, but the relevant cross -border financial services have not been admitted, and they have broken through the current personal items.The open rules of investment in securities shall be identified as illegal financial activities.
Sun Tianqi pointed out that Internet platforms or technology have played a positive role in enhancing financial institutions, especially small and medium -sized financial institutions, to expand the breadth and depth of inclusive finance, enhance the convenience of financial services, and play a positive role; but at the same timeThere are also some problems and risk hazards in this process.
The text emphasizes that the financial card has national borders.Expanding the opening of the financial industry is an inevitable requirement for building a new development pattern, but overseas institutions must abide by domestic regulatory rules in the domestic exhibition industry.
According to Bloomberg News, in October last year, Sun Tianqi said in an article published by the Forty Financial Forum website that from the perspective of business essence, cross -border Internet brokers belong to "driving without driving" in China, and it is ""Illegal financial activities", whether this qualitative is completely unrelated to whether capital items can be exchanged.Although it was not directly named at the time, it was affected by this at the time. Fugu and Xiaomi supported by Tencent Holdings's investment in the stock price of Tiger Securities supported.In this article published on Tuesday, he said that from the fact that the business is actually, these cross -border Internet brokers should be identified as "driving without driving" in China and suspected illegal financial activities.
Futu said in a statement that Hong Kong companies have complied with existing laws and regulations since their establishment.Tiger Securities will not comment.Haitong International and Tianfeng International Securities Group has not yet replied to set the request.
China has been comprehensively tightening the control of the economy, especially companies that consolidate consumer data, such as car rental applications (APPs) and other technology giants.The business of Futu and Tiger Securities has always been in a gray area. They have allowed millions of Chinese investors to bypass capital control and trade stocks in markets such as Hong Kong and New York.China currently stipulates that individuals' annual exchange quota is $ 50,000, but it must not be used directly for overseas investment.
