China’s efforts to control capital outflows are colliding with growing demand from mainland investors for access to overseas stocks.
The government has launched a sweeping crackdown on offshore trading platforms accused of helping investors bypass Beijing’s capital controls. The move has already rattled brokerages and investors, and could reshape how mainland Chinese access foreign markets.
The Launching Ceremony of Shenzhen-Hong Kong Stock Connect at Shenzhen Stock Exchange in 2016.
Photographer: Zhong Zhenbin/Anadolu Agency/Getty Images
What are the rules around foreign stock trading?
Beijing has restricted outbound capital flows for decades to prevent sudden and large cross-border movements, particularly during periods when capital flight has threatened to drain foreign exchange reserves.
Individuals are subject to a $50,000 annual cap ...