r/baba
Old news brokers were deemed illegal since Dec 2022
The poster points out that the regulatory crackdown on Futu soliciting mainland clients is old news from Dec 2022.
- The regulatory crackdown is old news from Dec 2022 and likely already priced into the stock.
- China's regulator previously deemed the cross-border brokerage business illegal and ordered a halt to mainland client solicitation.
https://www.reuters.com/business/china-regulator-asks-futu-up-fintech-stop-soliciting-mainland-clients-2022-12-30/
The only impact to baba, jd, etc is futu and tiger are forced to sell their ADR, HK holdings. As well as the mainland Chinese using their platforms.
Truly a nothingburger beyond that.
One would think the regulators would have an orderly way to transfer any ADR shares though and why would the Chinese want ADR shares in any case.
Old news and nothing burger but China ADRs and China market-related stocks (like retail) are still down significantly! And Tiger is down 40% in premarket. Thats pretty serious imo.
Tiger should be down 40% ... that makes sense to me (I've no idea what the ticker is) but this news shouldn't affect other stocks imo.
What a joke investing there
Ant Finance is not affected by this as Bright securities have ceased offering US stock trading to mainland clients since 2023
https://www.scmp.com/business/china-business/article/3210076/hong-kong-brokerage-bright-smart-suspends-mainland-chinese-clients-accounts-ahead-new-csrc