Core Viewpoint - The Shenzhen Municipal Financial Office has issued a warning regarding the risks associated with cross-border investments, highlighting that some investors lack awareness of these risks and have fallen victim to illegal transactions and new scams, resulting in financial losses [1][4]. Group 1: Risk Cases - Case 1: Investors opening accounts with overseas brokers for trading Hong Kong and US stocks faced significant losses due to unauthorized account merging, incorrect stock data migration, and lack of daily reconciliation statements [4]. - Case 2: An investor was scammed by an individual claiming to work for a licensed Hong Kong company offering off-exchange options trading with promises of high returns. The individual lacked the necessary qualifications, and the investor lost their funds when the company refused to pay out [4][5]. - Case 3: An investor opened an account with a Hong Kong broker in Shenzhen for off-exchange options trading but was unable to withdraw profits when the broker failed to respond and later filed for bankruptcy [5][6]. Group 2: Regulatory Environment - The Shenzhen Municipal Financial Office advises investors to assess their risk tolerance before engaging in cross-border investments and to utilize compliant mechanisms such as QDII and "Shanghai-Hong Kong Stock Connect" or "Shenzhen-Hong Kong Stock Connect" [6]. - Regulatory bodies have previously cracked down on illegal cross-border securities operations, with the China Securities Regulatory Commission (CSRC) taking action against companies like Futu Holdings and Tiger Brokers for illegal activities [6].