The China Securities Regulatory Commission issued a restriction notice to FUTU and Soochow Securities, freezing customer accounts suspected of improper conduct with enterprises

The China Securities Regulatory Commission (CSRC) issued restriction notices to FUTU and Soochow Securities, prohibiting them from disposing of or handling the withdrawal or transfer of assets held in accounts ultimately owned by a board member of a certain listed company, who is suspected of misconduct and violating his duties to the listed company.

The restriction notices prohibit these two brokerage firms from disposing of or handling, assisting, inducing, or facilitating another person to dispose of or handle the assets in such accounts in any way without prior written consent from the CSRC, limited to the amounts specified in the notices. If these brokerage firms receive any instructions related to the above restrictions, they must immediately notify the CSRC.

The CSRC believes that issuing the relevant restriction notices to preserve the assets in such accounts is a necessary practice to ensure that funds are available to comply with any orders that may be made by the court in legal proceedings that the CSRC may initiate, and is desirable in terms of protecting the interests of investors or the public interest