--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/41490384.md" description: "🤷Why not allow Mainland retail investors to invest in US and Hong Kong stocks?This topic is very interesting. I was fortunate enough to have an in-depth exchange and learning session with a big brother from Vancouver (at least A11, owns several US and Hong Kong listed companies, a financial/audit expert) not long ago. I'd like to try to share a few words about my understanding and observations.❤️The first layer: Why block Mainland retail investors' investment path?It's not that they're afraid of you making money, it's that they're afraid the money won't come back once it goes out. To put it bluntly, it's still an issue of foreign exchange controls.China's foreign exchange reserves, RMB exchange rate, real estate, and stock market are essentially a closed pool maintained by "capital not being able to flow freely in and out." Remember, Mainland's closed pool is completely different from Hong Kong's!Once hundreds of millions of people are allowed to freely convert RMB into USD to buy US stocks, the water level (exchange rate, liquidity) of this pool would instantly spiral out of control. The so-called protection of retail investors, the real priority is "protecting this pool."The money of retail investors is the water that maintains the pool's level, not the fish the pool is meant to protect.🌸The second layer: Then why does the A-share market keep people but can't make them money?Because from its inception, the A-share market's financing function > investment function.Many naive investors don't understand this. In reality, China doesn't have a truly free capital market.The primary task of the A-share market is to provide capital to enterprises (especially central and state-owned enterprises), not to create returns for retail investors. The opening of the registration system, refinancing, share reductions, IPO capital drainage, etc... The A-share market is like a one-way water pump, pumping money from retail investors' pockets into corporate accounts.This is the structural reason for the US stock market's decade-long bull run versus the A-share market's decade-long stagnation at 3000 points. If you don't understand this, you might as well think about why many mutual funds can make money, but it's very difficult for retail investors to do so?⛔The third layer: Euphemistically called "protecting the naive investors"Locking people in a market where they can only enter but not exit, and which doesn't make money in the long run, and then telling you: This is to protect you.You are well protected. You can only play at this one table, with the highest costs and the worst odds, in a game you are highly likely to lose. When you're about to lose everything, they suddenly let you recover a bit, whipping up market enthusiasm. Then it's the familiar script of trapping the players.And those truly smart people who understand the rules have long taken their chips to play at the next table over." datetime: "2026-06-04T14:49:10.000Z" locales: - [en](https://longbridge.com/en/topics/41490384.md) - [zh-CN](https://longbridge.com/zh-CN/topics/41490384.md) - [zh-HK](https://longbridge.com/zh-HK/topics/41490384.md) author: "[浩浩荡荡地](https://longbridge.com/en/profiles/19784218.md)" --- # 🤷Why not allow Mainland retail investors to inves… ## Comments (9) - **大龙龙 · 2026-06-05T03:48:30.000Z**: That makes a lot of sense. After seeing the reality clearly, work hard. - **小R老板 · 2026-06-04T16:14:46.000Z**: Clear-headed - **solid · 2026-06-04T15:06:20.000Z**: Life is already hard enough for ordinary people, and then the ruling class often trips you up. - **浩浩荡荡地** (2026-06-04T15:08:16.000Z): So pitiful - **左储右光 · 2026-06-04T14:55:14.000Z · 👍 1**: Recalling the debt-to-equity swaps of state-owned enterprises that were insolvent back in the day - **浩浩荡荡地** (2026-06-04T14:56:53.000Z): How to win in a country with 90% odds? - **KAISHENG** (2026-06-04T15:13:51.000Z): When does the OP plan to emigrate? - **浩浩荡荡地** (2026-06-04T15:23:16.000Z): No money. Dear