China's securities regulator plans to confiscate all illegal gains from Tiger Brokers, Futu Securities, and Longbridge Securities, both domestically and overseas, marking an escalation from curbing new accounts to liquidating past profits for cross-border brokerage services.

ONDO climbed above $0.46 with a gain of more than 15% in 24 hours, as traders linked the move to China’s crackdown on illegal cross-border brokerage activity and renewed interest in RWA exposure.

China's securities regulator imposed massive fines on cross-border brokerages Futu Holdings and Tiger Brokers for illegal operations, totaling 2.26 billion yuan. Both companies said mainland client assets now account for only about 10% of total client assets.

China's securities regulator banned Futu and Tiger Securities from serving mainland clients, cutting off the traditional channel for investing in US stocks. The RWA leader Ondo Finance becomes a digital safe haven, with ONDO token jumping 17% and TVL exceeding $3.7 billion.

A new joint notice from PBoC, CSRC and other agencies extends China's virtual currency ban to RMB-pegged stablecoins and tokenized real-world assets. Meanwhile, Hong Kong plans to grant first stablecoin licenses by March, with Ant Group and JD.com among interested parties.

China’s A-share market staged a sharp intraday reversal on July 21 after several sessions of declines, with the STAR 50 Index surging 10.73% for its biggest one-day gain in nearly a year. The Shanghai Composite rose 1.79%, the Shenzhen Component added 4.81%, and the ChiNext Index climbed 7.05%. Turnover across the three exchanges reached 2.97 trillion yuan, up 256.1 billion yuan from the previous session, while more than 3,100 stocks advanced and over 100 hit the daily limit. Semiconductor names led the rebound, lifting equipment, memory, wafer and HBM-related segments as well as a broad range of themed ETFs. Products tied to STAR Market semiconductors posted double-digit gains, with several ETFs up more than 18%. The report cited three main drivers behind the move: fresh capital entering the market since July 19, including purchases by state-backed funds, insurers, listed companies and public and private funds; policy support after China Securities Regulatory Commission Chairman Wu Qing said the regulator would do its utmost to maintain market stability; and a rebound in overseas equity markets, especially South Korea. Fund managers including Jinying Fund, Bosera Fund and CE Fund said the most panic-driven phase in technology stocks has likely passed, though they also cautioned that short-term volatility remains elevated and that investors should watch earnings, margin financing trends and new industry catalysts.

Shenzhen Weizhao Semiconductor Co., Ltd., a power semiconductor device supplier and a national-level "little giant" enterprise, has filed a fresh application for a main-board listing in Hong Kong, with GF Securities serving as sole sponsor. The move comes after its first filing, submitted on Jan. 12, 2026, lapsed six months later. The renewed application arrives as the company’s operating picture weakens. According to its prospectus, Weizhao posted a net loss of 510,000 yuan in the first five months of 2026, compared with a profit of 26.529 million yuan a year earlier. Gross margin fell to 17.9% from 22.4%, while the revenue share of its higher-margin WLCSP products dropped from 46.3% to 27.4%. Regulatory scrutiny has also intensified. In June 2026, the China Securities Regulatory Commission asked the company six questions in supplemental filing materials for overseas listing registration, focusing on whether recent share placements were fairly priced, whether differing entry prices among new shareholders were reasonable, and whether two equity incentive grants involved unusually large pricing gaps or related-party ties. The prospectus also shows a sharp reshaping of the company’s channel structure, with distributor numbers falling from 658 to 103 over three years, alongside rising customer and supplier concentration.

Zhongji Innolight Co. has received approval from the China Securities Regulatory Commission and the Hong Kong Stock Exchange for its planned Hong Kong listing, according to Bloomberg, clearing a key procedural step for the offering. The company obtained the mainland regulator’s approval for the Hong Kong share sale plan on July 17 after securing listing permission from HKEX earlier. If completed, the transaction could raise as much as $8 billion, a size that would place it among the largest IPOs seen in Hong Kong in recent years. Zhongji Innolight develops and manufactures high-speed optical communication modules, and the report said the company has benefited from rising global demand tied to AI data center construction, especially for 800G and 1.6T optical modules. The market view cited in the report is that a Hong Kong listing would lift the company’s profile in international capital markets and provide funding support for a broader global AI infrastructure supply chain buildout.