Futu & Long Bridge Suspend Accounts as China Cracks Down on Fake Brokers

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Chinese online brokerages Futu Holdings and Long Bridge have begun closing accounts created with forged documents and inactive accounts with no assets or holdings, following a recent crackdown by China’s securities regulator on mainland investors involved in illegal cross-border securities activities.

The Futu NiuNiu app has introduced a new “Update Identity Information” shortcut in the “Account” section, accompanied by a notice titled “Notice on Updating Identity Information.” Customers who possess valid overseas identification documents can continue to access all account functions—including trading and fund deposits or withdrawals—without disruption once they complete the information update.

These new regulations, issued by the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong on May 22, primarily impact investors who only hold Chinese mainland ID cards or passports, according to an insider from the Hong Kong-based firm. Other investor categories are not affected. Clients with qualifying overseas identification documents will remain unaffected, regardless of when they obtained these documents relative to account opening.

The company had already conducted internal reviews in the latter half of last year to identify and close such accounts.

The regulatory effort focuses mainly on two kinds of accounts: those opened using suspicious or forged documents and inactive accounts with no holdings, as detailed in Long Bridge’s communication to its clients. Accounts properly opened in compliance with regulations and holding genuine assets will not be subject to closure.

Regulators have not yet provided guidelines for the industry’s proposed two-year rectification period. Currently, all client accounts, trading operations, and fund services continue to function normally. The brokerage plans to monitor policy developments closely and will inform customers promptly through website updates, app notifications, and other channels if any changes occur.