China’s latest crackdown on cross-border stock trading could impact as much as
HK$250 billion ($32 billion) in Hong Kong assets, according to Citi Securities.
The firm estimates Futu Holdings Ltd. accounts for HK$150 billion to HK$180
billion of affected assets, while Tiger Brokers represents HK$45 billion to
HK$50 billion. Regulators have targeted brokerages operating on the mainland
without licenses, including Futu, Tiger Brokers and Long Bridge Securities, and
plan to confiscate alleged illegal gains. Citi and Morgan Stanley both said the
overall market impact is likely manageable, with trading disruptions expected to
be gradual rather than abrupt.
