Not all investors are rushing for the exits.
UOB’s Goh said that the measures provide a two-year transition period and do not require investors to immediately liquidate existing holdings.
“There is no mechanical reason to act today,” he said, noting that investors can still sell and withdraw funds during the transition period.
Ge, the software engineer and investor in Beijing, said he felt some relief because the brokerage platform he uses was not among the three offshore brokerages specifically named by regulators this time round.
He is taking a wait-and-see approach because regulators appeared to be phasing in the restrictions gradually, and investors still had time to respond.
Goh at UOB noted that changing brokers is often more complicated than simply opening a new account, especially for investors who have built up portfolios over several years.
“Trusting a platform with new money and feeling you must sell what you already hold are two different things,” he said.
Some may shift back into approved channels such as QDII, Stock Connect or Wealth Management Connect, while others could explore overseas bank accounts, family offices or offshore structures, other experts said.
Brock Silvers, chief investment officer of Hong Kong private investment firm Kaiyuan Capital, said the latest restrictions do not represent a broader reversal of Beijing’s financial opening agenda.
“Authorities remain committed to financial opening, but primarily for inbound capital,” he said.
“Outbound capital flows remain controlled, and investors shouldn’t expect rapid changes.”
Back in Beijing, Liang the investor believes that demand for overseas investing is unlikely to disappear despite tighter restrictions.
Investors seeking global diversification are unlikely to abandon overseas markets simply because one route has been closed, she said.
“People determined to invest overseas will still look for other ways,” she added.
