(Reuters) Chinese regulators are set to ban online brokerages including Futu Holdings Ltd and UP Fintech Holding Ltd from offering offshore trading services to mainland clients.
The Nasdaq-listed Chinese companies are two of the biggest players in the industry, and a ban would prohibit millions of retail investors in mainland China from trading securities in the US and Hong Kong.
Chinese officials are citing concerns over data security and capital outflows from the economy as the main driving factors for the ban.
The looming ban comes on the back of a crackdown that has seen authorities impose restrictions on the scope of companies over the last year, sectors ranging from technology to education and real estate.
Companies affected by the recent crackdown are likely to be informed of a ban in the coming months.
Futu and UP Fintech are registered with the Securities and Futures Commission in Hong Kong, but that permit does not cover the mainland.
FUTU down -0.51%, TIGR down -4.21%.
