Hua Er Jie Jian Wen·2025-06-13 11:05Core Viewpoint - The regulatory crackdown on illegal account openings for mainland residents in Hong Kong is intensifying, with new requirements set to take effect on June 13, 2023, significantly raising the barriers for account opening [1][2]. Group 1: Regulatory Changes - Starting June 13, 2023, Hong Kong brokers such as Changqiao and Huasheng will no longer accept "stockholder proof" for account openings, requiring mainland residents to provide proof of overseas living or work, such as utility bills or rental agreements [1][2]. - The cancellation of the stockholder proof, which allowed mainland investors to open accounts based on existing overseas accounts, effectively closes the loophole for mainland residents to establish offshore securities accounts [1][4]. Group 2: Background and Rationale - The initial allowance for stockholder proof was intended to mitigate risks associated with existing funds, enabling residents with prior accounts to transition to new brokers in case of broker insolvency [4]. - The recent surge in the Hong Kong stock market, with the Hang Seng Index and Hang Seng Tech Index showing significant gains, has led to increased cross-border investment demand from mainland residents, prompting regulatory scrutiny [4]. Group 3: Industry Response - The crackdown is a response to the emergence of a gray market where intermediaries assist mainland residents in falsifying stockholder proof to circumvent regulations, creating a complete industry chain of forgery and regulatory evasion [4]. - The regulatory directive to halt account openings for mainland residents was issued approximately three days prior to the announcement, indicating a coordinated effort among brokers to comply with new guidelines [2][3]. Group 4: Future Outlook - The recent policy changes are expected to render stockholder proof increasingly ineffective, ultimately closing the channel for mainland residents to open accounts in Hong Kong [4]. - Concurrently, the regulatory framework is evolving to enhance asset allocation options for mainland investors, as indicated by recent policy announcements aimed at deepening market connectivity between Shenzhen and Hong Kong [5].