Core Viewpoint - The cross-border internet brokerage firms have tightened their account opening policies for mainland residents, now requiring "overseas identity proof" instead of "proof of overseas living or working" [1][10]. Summary by Sections Account Opening Requirements - Mainland clients must now provide overseas resident identity proof to open accounts with firms like Futu and Tiger Brokers [1][3]. - Required documents include a valid mainland identity document (such as ID card or passport) and an identity document from Hong Kong or Macau [3][6]. Recent Changes in Policies - In June, Long Bridge Securities limited account openings to mainland clients who actually work or live abroad [10]. - In August, Interactive Brokers (IBKR) removed its app from mainland app stores and required long-term overseas living or working proof for account applications [12]. Regulatory Background - The tightening of account opening policies is part of ongoing regulatory efforts that began in 2021, aimed at curbing illegal cross-border operations [13][14]. - The China Securities Regulatory Commission (CSRC) has emphasized the need to prevent unlicensed foreign institutions from soliciting mainland investors [14]. Industry Response - Multiple internet brokerages have followed suit in adjusting their account opening requirements, indicating a trend towards stricter compliance with regulatory standards [11][12]. - The adjustments are seen as a necessary response to the evolving regulatory landscape and increased scrutiny on cross-border securities activities [14].

Core Viewpoint - The recent tightening of account opening requirements by major internet brokers and banks in Hong Kong indicates a significant regulatory shift aimed at curbing illegal cross-border securities activities and addressing the rampant issues in the IPO subscription process [1][4][6]. Group 1: Changes in Account Opening Policies - Major internet brokers like Futu and Changqiao have halted the acceptance of "stockholding proof" for mainland users, now requiring proof of residence or work abroad, which raises the complexity of the application process [2][3]. - The new requirements include various documents such as utility bills, credit card statements, and government-issued documents, all needing to be recent and clearly displaying personal information [2][3]. - Other brokers and banks are following suit, tightening their review processes and rejecting applications from mainland investors, reflecting a broader industry trend [3][4]. Group 2: Market Dynamics and Regulatory Background - The Hong Kong IPO market has seen a surge, with an expected 40 companies going public in the first half of 2025, raising approximately HKD 108.7 billion, marking a 33% increase in IPO numbers and a 711% increase in fundraising compared to the previous year [4][5]. - The average oversubscription rate for new stocks has risen to 642 times, indicating heightened investor interest and participation in the IPO market [4]. - Regulatory scrutiny on cross-border securities activities has intensified since 2021, with the China Securities Regulatory Commission mandating corrective actions for brokers involved in illegal activities [6][7].