Key Points: Core of the Event On May 22, 2026, the China Securities Regulatory Commission (CSRC) issued a preliminary notice of administrative penalties against Tiger, Futu, and Changqiao, along with their related entities both domestically and overseas, for allegedly engaging in illegal securities business activities within China. The proposed penalties include confiscation of all illegal gains and severe legal sanctions. Note that this is currently only a preliminary notice—not a final decision—and the parties involved still retain the rights to present statements, defenses, and request a hearing. Meanwhile, relevant CSRC departments responded to media inquiries regarding the joint issuance by eight ministries of the “Implementation Plan for Comprehensive Governance of Illegal Cross-Border Securities, Futures, and Fund Activities,” clearly stating that this governance initiative will establish a two-year concentrated rectification period. What This Means for Individual Investors The most important point: This rectification targets the illegal cross-border business activities of institutions, not the stocks or cash in ordinary investors’ accounts. Official statements explicitly confirm that investor asset security will not be affected by this action; existing accounts will not be forcibly closed, and assets such as funds, stocks, and funds within these accounts will not be forcibly liquidated. However, usage restrictions on existing accounts will be significantly tightened. During the concentrated rectification period, overseas institutions are prohibited from illegally providing services such as purchasing transactions or fund inflows to existing investors within China—only one-way selling and fund outflows will be permitted. After the rectification period ends, the relevant institutions must fully shut down their websites, trading software, and associated servers within China and cease providing any related trading services domestically. More accurately, this does not mean “your assets will disappear after two years,” but rather that continuing to operate your account through these illegal channels from within China will become increasingly difficult, ultimately requiring full withdrawal.