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In Depth: China Shuts Multibillion-Dollar Loophole to Offshore Markets

By Yue Yue
2026年07月24日 18:15
Regulators have ordered brokerages to halt new cross-border swaps for private funds, closing a murky channel that raised concerns about hidden leverage and capital flight

Chinese regulators have moved to curb one of the market’s more discreet channels for overseas investing, instructing brokerages to stop taking on new cross-border total return swap (TRS) business for private securities funds after the trade became a popular way to gain offshore exposure outside formal investment channels.

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