China’s Crackdown on Illicit Cross-Border Stock Trading Sparks Investor Exodus

Chinese investors are seeking new avenues for trading overseas equities following Beijing’s severe crackdown on illicit cross-border stock trading to prevent capital outflows. Richard Wang, an artificial intelligence professional in the United States, made the decision to offload his US stocks on May 22 in response to China’s stringent actions. He now awaits the reopening of the Hong Kong market to divest his remaining positions. The repercussions were immediate, with the Nasdaq Golden Dragon China Index plummeting 2.2% on May 22, leading to a 28% drop in Futu’s shares. Futu’s CEO, Leaf Li, saw his wealth decrease by $1.7 billion…