Futu Holdings disclosed on Friday that it received an
investigation notice and a penalty pre-notification from the China Securities
Regulatory Commission (CSRC), triggering a steep decline in its share price
before the market opened.
The total proposed fine stands at RMB1.85 billion,
equivalent to about $271 million. Regulators also plan to impose a personal
fine of RMB1.25 million on Futu’s founder and CEO, Li Hua.
Regulator Flags Unlicensed Activities
The CSRC and its Shenzhen bureau allege that certain
Futu-related entities in mainland China and Hong Kong conducted securities
trading, public fund sales, and futures business in mainland China without the
required approvals.
According to the regulator, these actions violate China’s
Securities Law, Securities Investment Fund Law, and Futures and Derivatives
Law. Authorities propose ordering the company to halt or correct the
activities, confiscate gains linked to the violations, and impose financial
penalties.
The case remains subject to further proceedings. Futu has
the right to submit explanations, present a defense, and request a hearing
before any final decision.
Company Response and Broader Scrutiny
Futu said it has been in communication with the regulator
and has already implemented rectification measures related to its mainland
operations. The company added that mainland China accounts represented about
13% of its total funded accounts as of the end of the first quarter of 2026.
Read more: Moomoo Expands Texas Crypto Offering With Wallet Deposit and Withdrawal for Retail Investors
It also noted that its international business continues to
expand, with overseas accounts growing steadily, while operations outside
mainland China remain unaffected.
On the same day, Chinese authorities signaled similar
enforcement actions against other online brokerages, including a New Zealand
unit of Tiger Brokers and a Hong Kong-based entity of LongBridge Securities.
The developments point to increased regulatory scrutiny of
platforms offering cross-border investment services to mainland users,
particularly where licensing requirements may not have been fully met.
Early this year, Futu Holdings reported strong financial
results for 2025, with net profit more than doubling as revenue rose to over
$2.9 billion. Net income reached HK$11.3 billion ($1.45 billion), marking a
108% increase from the previous year, while total revenue climbed 68.1% to
HK$22.8 billion.
Futu Reports Record Growth in 2025
The firm also improved its gross profit margin to 87.1%, up
from 82%, reflecting slower cost growth compared to revenue. The performance
came as investors increased exposure to U.S. technology stocks and the company
expanded its presence across Asian markets.
Trading activity played a central role in the results, with
total annual trading volume rising 89.4% to HK$14.68 trillion. In the fourth quarter alone, volume reached a record HK$3.98
trillion, up 37.8% year-over-year. U.S. equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term accounted for the majority of
this activity at HK$3.04 trillion, driven by strong client demand for
artificial intelligence-related stocks, according to the company.
Moomoo, the subsidiary of Futu, also launched a new feature that allows retail investors to connect their own artificial intelligence tools
directly to its trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
Read this Term. The move placed Moomoo among a growing number
of brokers, including eToro and Robinhood, that are introducing AI-driven
investing features as competition in the retail trading space increases.
Moomoo also
expanded its cryptocurrency trading services to users in Texas and added a
feature that allows U.S. customers to deposit and withdraw crypto directly. The
move comes as more brokers broaden their crypto offerings, similar to IG Group,
which recently secured a UK regulatory license to provide crypto services and
enable direct transfers for clients.
Futu Holdings disclosed on Friday that it received an
investigation notice and a penalty pre-notification from the China Securities
Regulatory Commission (CSRC), triggering a steep decline in its share price
before the market opened.
The total proposed fine stands at RMB1.85 billion,
equivalent to about $271 million. Regulators also plan to impose a personal
fine of RMB1.25 million on Futu’s founder and CEO, Li Hua.
Regulator Flags Unlicensed Activities
The CSRC and its Shenzhen bureau allege that certain
Futu-related entities in mainland China and Hong Kong conducted securities
trading, public fund sales, and futures business in mainland China without the
required approvals.
According to the regulator, these actions violate China’s
Securities Law, Securities Investment Fund Law, and Futures and Derivatives
Law. Authorities propose ordering the company to halt or correct the
activities, confiscate gains linked to the violations, and impose financial
penalties.
The case remains subject to further proceedings. Futu has
the right to submit explanations, present a defense, and request a hearing
before any final decision.
Company Response and Broader Scrutiny
Futu said it has been in communication with the regulator
and has already implemented rectification measures related to its mainland
operations. The company added that mainland China accounts represented about
13% of its total funded accounts as of the end of the first quarter of 2026.
Read more: Moomoo Expands Texas Crypto Offering With Wallet Deposit and Withdrawal for Retail Investors
It also noted that its international business continues to
expand, with overseas accounts growing steadily, while operations outside
mainland China remain unaffected.
On the same day, Chinese authorities signaled similar
enforcement actions against other online brokerages, including a New Zealand
unit of Tiger Brokers and a Hong Kong-based entity of LongBridge Securities.
The developments point to increased regulatory scrutiny of
platforms offering cross-border investment services to mainland users,
particularly where licensing requirements may not have been fully met.
Early this year, Futu Holdings reported strong financial
results for 2025, with net profit more than doubling as revenue rose to over
$2.9 billion. Net income reached HK$11.3 billion ($1.45 billion), marking a
108% increase from the previous year, while total revenue climbed 68.1% to
HK$22.8 billion.
Futu Reports Record Growth in 2025
The firm also improved its gross profit margin to 87.1%, up
from 82%, reflecting slower cost growth compared to revenue. The performance
came as investors increased exposure to U.S. technology stocks and the company
expanded its presence across Asian markets.
Trading activity played a central role in the results, with
total annual trading volume rising 89.4% to HK$14.68 trillion. In the fourth quarter alone, volume reached a record HK$3.98
trillion, up 37.8% year-over-year. U.S. equities
Equities
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa
Read this Term accounted for the majority of
this activity at HK$3.04 trillion, driven by strong client demand for
artificial intelligence-related stocks, according to the company.
Moomoo, the subsidiary of Futu, also launched a new feature that allows retail investors to connect their own artificial intelligence tools
directly to its trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
Read this Term. The move placed Moomoo among a growing number
of brokers, including eToro and Robinhood, that are introducing AI-driven
investing features as competition in the retail trading space increases.
Moomoo also
expanded its cryptocurrency trading services to users in Texas and added a
feature that allows U.S. customers to deposit and withdraw crypto directly. The
move comes as more brokers broaden their crypto offerings, similar to IG Group,
which recently secured a UK regulatory license to provide crypto services and
enable direct transfers for clients.
