China¡¯s crackdown on cross-border investments is ?set to weigh on the lucrative businesses of banks, insurers and wealth managers in Hong Kong that tap into the riches of mainland clients and undermine the city¡¯s standing as an offshore financial hub.
In late May, Beijing cracked down on cross-border investments and punished three online brokers for ¡°illegally¡± helping Chinese investors buy shares in foreign markets, including in Hong Kong.
Analysts and financial executives say the move could in the near term weigh on money flows to Hong Kong, the preferred offshore investment venue for Chinese individuals, due to concerns about greater scrutiny of capital outflows.
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