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Futu Stock Is Tumbling Today: What's Happening Behind The Scenes? - Futu Holdings (NASDAQ:FUTU)
- On Friday, the China Securities Regulatory Commission penalized Tiger Brokers, Futu Securities International, and Long Bridge Securities for illegally offering domestic investors access to overseas securities trading without regulatory approval.
- The three companies violated the Securities Law by promoting trading without mainland regulatory approval, as the CSRC aims to protect the "healthy development of the capital market" and channel outbound investments through official channels like the Stock Connect.
- Shares in Tiger parent UP Fintech Holding and in Futu Holdings fell more than 30 per cent in pre-market trade, while US-listed shares of Alibaba and PDD Holdings, the operator of Temu, also fell sharply.
- Regulators granted the firms a two-year grace period to wind down illegal activities, allowing customers to sell existing holdings, while a Tiger spokesperson noted the company "has always placed compliance as a top priority."
- The CSRC plans to continue cracking down on illegal stockbroking by overseas institutions to maintain capital market stability, though analyst Steven Leung of UOB-Kay Hian suggests these actions may temporarily cool trading in Hong Kong.
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18 Articles
China to Penalize Tiger, Futu in Cross-Border Flow Crackdown
China’s securities regulator plans to penalize Futu Holdings Ltd., UP Fintech Holding Ltd.’s Tiger Brokers and Longbridge Securities Ltd. for operating on the mainland without a license, marking a sharp escalation in a yearslong campaign against illicit cross-border brokerages.
·United States
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Coverage Details
Total News Sources18
Leaning Left4Leaning Right2Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 25%
R 25%
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