Chinese Private Funds Halt Cross-Border TRS Expansion After Regulatory Notice on June 24

According to BlockBeats, on June 24, Chinese mainland private funds received notices from brokers requiring suspension of new cross-border TRS (Total Return Swap) position increases at the regulatory level. The action follows a broader May crackdown by China's securities regulator and seven other agencies on unauthorized cross-border securities activities targeting firms like Tiger Brokers and Futu Holdings. Following restrictions on direct cross-border stock trading, many private fund managers have increasingly used TRS to gain exposure to overseas technology assets without moving capital abroad. Market participants indicated the suspension came abruptly and some fund strategies may face near-term adjustments pending further clarification on cross-border TRS quota regulations.
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