China says 'illegal' outbound investment crackdown won't lead to forced liquidation

China’s securities regulator says the crackdown won’t force‑close offshore accounts or forcibly liquidate assets — investor safety won’t be affected.
The announcement spooked savers (some rushing to Hong Kong); about $54 billion in offshore brokerage assets are seen as at risk and triggered sell‑offs in U.S. listed Chinese stocks.
From mid‑June some brokers (e.g., Tiger, Futu, Longbridge) will stop opening new accounts or taking fresh money from mainland clients, but legitimate offshore services can continue; the drive targets illegal onshore services and capital outflows.