Futu and Longbridge Initiate Account Cleanup: HKMA Implements Three New Rules as Mainland Investors Face Comprehensive Audits

According to a report by Yicai on May 28, following the joint issuance of the "Implementation Plan for the Comprehensive Rectification of Illegal Cross-border Securities, Futures, and Fund Business Activities" by eight Chinese authorities including the CSRC, Futu Securities and Longbridge Securities have initiated cleanup procedures for two specific categories of accounts.

Concurrently, as reported by ChainCatcher citing Cailian Press, the Hong Kong Monetary Authority (HKMA) issued a circular to all authorized institutions on May 22, introducing three additional regulatory measures targeting investment accounts held by Mainland investors.

Which Accounts are Futu and Longbridge Clearing?

The scope of the cleanup is consistent across both brokerages, focusing on the closure of the following two types of accounts:

1. Accounts opened using fraudulent or suspicious supporting documents (e.g., forged overseas address proof, utility bills, etc.).

2. Dormant accounts with zero assets and no holdings.

Longbridge Securities explicitly stated in its client notification that accounts opened in a normal and compliant manner with genuine assets and holdings are not subject to this cleanup.

Futu disclosed that its internal investigation and verification process commenced as early as the second half of 2025.

Three New Regulatory Measures from the HKMA

The HKMA requires registered institutions to implement the following additional measures when opening and managing investment accounts for Mainland investors:

The HKMA also clarified that these measures apply only to individual investment accounts. They do not affect non-investment functions such as savings, fixed deposits, payments, loans, or credit cards, nor do they apply to corporate or institutional clients.

Users with Overseas Identity Documents Remain Unaffected

The Futu Niuniu app recently added an "Update Identity Information" portal. The prompt indicates that account functions will remain fully operational if a user holds any of the following overseas identity documents and updates their records:

• Hong Kong Permanent/Non-permanent Resident Identity Card

• Hong Kong Work Visa or Student Visa

• Singapore PR / EP / SP / WP / Student Pass

• Other legal overseas identity documents

Futu customer service confirmed that the new regulations primarily affect "investors who only hold Mainland Chinese IDs or passports." Regardless of whether the overseas status was obtained before or after the account opening, current holders are exempt from these restrictions.

Rectification of Existing Business: 2-Year Transition Period

According to the joint plan by the eight authorities, a 2-year centralized rectification period has been established for existing illegal cross-border securities, futures, and fund businesses:

• During the Rectification Period: Brokerages are prohibited from providing buy orders or fund deposit services to existing investors. Only one-way selling and fund withdrawals are permitted.

• After the Rectification Period: Overseas institutions must completely shut down their domestic websites, trading software, and related support services.

Futu customer service noted that they have not yet received specific regulatory guidelines regarding the 2-year rectification period.

Trading and fund services for existing accounts remain unaffected for the time being, and updates will be provided via official announcements and app notifications.

Sources

• 
  Yicai — Futu and Longbridge Clear Accounts Opened with Fraudulent Documents and Empty Accounts
  

• 
  ChainCatcher — HKMA Adds Three Regulatory Measures for Mainland Investor Accounts
  

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