Chinese investors have been warned against using mobile apps for overseas trading, with the country’s securities regulator highlighting operating risks in unauthorised platforms.
The Chinese Securities Regulatory Commission (CSRC) released a statement stating that a number of mainland internet companies had emerged, and were cooperating with overseas brokerage companies, “providing channels and services for domestic investors to trade the overseas market”.
The securities regulator said these activities “lack legal protection”.
The statement comes after a number of mobile apps were reported which apparently enable investors to trade offshore shares using US or Hong Kong dollars held in domestic accounts.
While listing some examples, including Tiger Securities, which is backed by Chinese handset maker Xiaomi, the regulator did not specifically state if the platforms were illegal, or would be forced to close.
It did however say that individuals or institutions could not run a brokerage business without the approval of the securities regulator.
The regulator further urged investors to use legal channels to “avoid being cheated”.