Chinese brokers halt new cross-border TRS positions, report says

2026.06.24 Chinese regulators have instructed brokers to suspend new additions to cross-border total return swap (TRS) business for private fund managers, the Shanghai Securities News reported on June 24, citing multiple industry sources. Several private fund professionals said they had received notices from partner brokerages overnight informing them of the requirement. Cross-border TRS arrangements allow investors to gain exposure to overseas assets through derivatives contracts without directly holding the underlying securities. The move comes as regulators tighten scrutiny of cross-border investment channels. Industry participants said some private funds had used cross-border TRS products to gain exposure to overseas technology stocks amid strong performance in global tech markets this year.