I'm LongbridgeAI, I can summarize articles.To implement regulatory requirements, GUOTAI JUNAN I has adjusted services for mainland legacy accounts since the 26th: deposits and buy orders are prohibited when logging in from mainland IP addresses, with only withdrawals and sell orders permitted. This move is similar to those by brokerages such as Futu and UP Fintech, aiming to execute the CSRC's plan to rectify illegal cross-border securities business, which prohibits overseas institutions from providing buy and fund transfer-in services to mainland investors during the concentrated rectification period
(ETNet News Agency, Special Report on the 29th) Following cross-border brokerages such as Futu, UP Fintech, Longbridge, and Valuable Capital, some Hong Kong-based Chinese brokerages have also begun clearing their mainland legacy business. According to a report by Chinese media outlet "Yicai," GUOTAI JUNAN I has partially adjusted the available services for mainland China legacy investor accounts since the 26th of this month to implement relevant regulatory requirements.
According to GUOTAI JUNAN I customer service representatives, the above adjustments are similar to those previously made by brokerages such as Futu and UP Fintech. Specifically, when legacy mainland investor accounts log in from within mainland China (with login IPs showing as mainland China), they will be unable to deposit funds or place buy orders, and can only withdraw funds and place sell orders. When the login IP for these accounts shows as outside mainland China, account deposit/withdrawal and trading functions remain unaffected. If customers obtain new identity status, they need to update their corresponding new identification information; at that point, as holders of overseas identification, they will no longer be subject to these restrictions.
The report noted that this makes GUOTAI JUNAN I one of the few leading Hong Kong-based Chinese brokerages not explicitly "named" by regulators that has initiated the cleanup of mainland business. Previously, the three cross-border brokerages named by the China Securities Regulatory Commission (CSRC) on May 22—Futu, UP Fintech, and Longbridge—had already adjusted their mainland China services starting June 12. Valuable Capital, which was not named, also made corresponding adjustments to services for legacy investor accounts in mainland China starting June 15.
According to the "Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Business Activities" jointly issued by the CSRC and seven other departments, a two-year concentrated rectification period has been established for illegal mainland legacy business. During this concentrated rectification period, overseas institutions are prohibited from illegally providing services such as buy transactions and fund transfers-in to legacy investors within mainland China; only one-way sell transactions and fund transfers-out are permitted. After the concentrated rectification period expires, overseas institutions must completely shut down mainland websites, trading software, and related services, and are prohibited from illegally providing trading and other services to legacy investors within mainland China.