(Yicai Global) Feb. 17 -- Bright Smart Securities and Commodities Group has reportedly unfrozen its Chinese mainland clients' trading accounts after China's securities watchdog clarified the policy on brokerages' cross-border business expansion.

Mainland clients can continue to trade in all categories, as the China Securities Regulatory Commission said it would not restrict trading by existing clients without any reason, Bright Smart told The Paper yesterday. The Hong Kong-based firm has not yet released an official statement.

Bright Smart said on Feb. 13 that it would suspend mainland clients' accounts from yesterday until the CSRC or relevant authorities clarified the regulations. Other offshore securities companies reportedly took similar steps.

Following market concerns about the account suspensions, the CSRC said on Feb. 15 that mainlanders can continue to trade using existing offshore accounts if they strictly comply with the relevant foreign exchange control provisions when transferring funds. Non-licensed offshore institutions are prohibited from soliciting mainland investors and opening new accounts for them, it added.

According to China's forex management regulations, mainlanders have an annual foreign exchange purchase limit of USD50,000, but they cannot use the money to buy homes and life insurance offshore, make securities investments, or join insurance and other capital projects.

Shares of Bright Smart [HKG: 1428] closed 2 percent lower today at HKD1.46 (19 US cents). The wider Hong Kong stock market fell 1.3 percent.

Editor: Futura Costaglione