The recent regulatory crackdown on cross-border brokerages like Futu and Tiger Securities marks a shift toward stricter financial and data security oversight. Eight government departments have prohibited these platforms from soliciting new mainland clients, citing violations of foreign exchange regulations regarding capital account transactions. Historical shifts in foreign exchange policy, such as the 2015 "811 reform," have led to tighter controls on capital flight, rendering previous "ant-moving" strategies illegal. Investors are now directed toward compliant channels like Stock Connect, QDII funds, and the Wealth Management Connect, which prioritize capital security. Rather than chasing speculative US tech gains, investors should re-evaluate domestic market opportunities and recognize the inherent risks in both domestic and international equity markets.
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