Futu Holding and UP Fintech Holding (the company behind Tiger Brokers), both U.S.-listed Chinese online brokerages, face regulatory concerns when China's new personal data privacy law takes effect on November 1, according to an analysis on the People's Daily website.

According to the report, such brokerages, which assist mainland Chinese citizens in investing in international stock markets such as those in the United States and Hong Kong, may breach data privacy regulations and pose compliance concerns.

In The Spotlight Of Regulators

From November 1, China will adopt the Personal Information Protection Law, which will supplement the Data Security Law in regulating cyberspace and protecting national security.

According to the People's Daily, the new laws would restrict the export of personal data, creating a challenge to internet brokers that provide cross-border trading services to mainland Chinese people.

China has begun a slew of crackdowns on industries ranging from technology to cryptocurrencies to real estate. The People's Daily article might place Chinese internet brokers in the spotlight of regulators.

Compliance Issues

Chinese investors can now invest in international securities markets through cross-border Connect programmes and Qualified Domestic Institutional Investors (QDII).

Aside from these two channels, China's securities regulator has not permitted any organisations to provide cross-border trading services to domestic clients, according to People's Daily.


  • Following a long crackdown, Chinese technology stocks are coming back to life
  • Yet, risks remain as any sign of excessive profitability or growth may be seen as dangerous to Beijing which may choose to punish these players again in the non-distant future


Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.


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