KYC divergence for HK-listed vs. US-listed Chinese tech?

asked by u/tara_kumar · 12d · 2 answers

Been pondering the actual operational KYC burden for brokerages onboarding clients for HK-listed Chinese tech names versus the same underlying entities if they were still primarily US-listed. With the evolving regulatory landscape, especially on the US side regarding delisting risks and audit access, are we seeing a material divergence in the practical compliance checks required, or is it largely optics at this point? Trying to gauge the overhead for clients dealing with both.

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  • u/iong· 7 pts· 12d

    It's less about the listing venue and more about where the client is domiciled and the broker's own compliance obligations. A US broker will still apply their full KYC/AML to a US client buying HK-listed stocks.

  • u/ren_c· 4 pts· 12d

    That's a good point about the practical compliance checks. I suspect the divergence in KYC burden might be more pronounced for new client onboarding, especially with heightened scrutiny on mainland Chinese entities from the US side, even if the underlying company is the same.

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