Futu and Tiger Plunge 40% in Pre-market Trading! China Rolls Out “Nuclear-Level” Regulation: Mainland Customers Can Only Sell, Not Buy, Starting Today

Chinese concept cross-border brokerage firm's "Doomsday" arrives! The China Securities Regulatory Commission (CSRC) today (22nd) suddenly announced heavy regulatory measures, accusing Futu, Tiger, and Changqiao Securities of illegal cross-border operations, with all illegal gains to be confiscated. Even more critically, the authorities ordered an immediate cutoff of mainland capital inflows, leaving existing clients in a dilemma of "only able to sell, cannot buy," and plans to fully shut down and disconnect within two years. Panic instantly ignited Wall Street, with Futu (FUTU) and Tiger (TIGR) both plunging nearly 40% in pre-market trading.
(Background: Major news—CSRC plans to confiscate all illegal income from Tiger, Futu, and Changqiao "both domestic and overseas")
(Additional context: Futu’s Leopard Exchange has achieved a "broker + crypto" dual-licensing platform, set to promote cryptocurrency as collateral)

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• Confiscation of gains, complete disconnection: CSRC applies maximum pressure
• Two-year crackdown, mainland clients face "substantive withdrawal"
• Futu, Tiger respond swiftly: actively embracing regulation

Chinese concept broker stocks listed in the U.S. today (May 22, 2026) face an unprecedented darkest hour.

Affected by China’s latest destructive regulatory policies, panic selling erupted before Wall Street market open. According to the latest pre-market trading data, the two major cross-border brokerage giants’ stocks were both ruthlessly washed out:

• Futu Holdings (FUTU): From the previous trading day close at $123.86, pre-market plummeted straight to the $75.5–77.7 range, a staggering decline of -37% to -39%.
• Tiger Securities (TIGR): Dropped from $5.84 to around $3.7, a decline of about -36% to -37%.

Both stocks saw significantly increased pre-market trading volume, indicating massive capital fleeing recklessly.

Confiscation of gains, complete disconnection: CSRC applies maximum pressure

The trigger for this stock market crash was a heavy administrative penalty jointly issued today by the China Securities Regulatory Commission (CSRC) and multiple departments.

The CSRC pointed out that entities including Futu Securities International (Hong Kong), Tiger Securities (New Zealand), and Changqiao Securities (Hong Kong), without approval, engaged in "illegal operations" within China, including brokerage, margin trading, and fund sales, severely disrupting market order. In response, the authorities decided to impose the harshest sanctions: to confiscate all illegal income of these entities and impose hefty fines according to law. An investigation has been officially initiated, and a prior administrative penalty notice has been issued.

Two-year crackdown, mainland clients face "substantive withdrawal"

For these brokerages heavily reliant on mainland Chinese users, the real deadly blow lies in the government’s two-phase plan to cleanse "existing clients (current customers)":

2. Immediate "one-way disconnection": Completely prohibit providing "buy transactions" or "fund transfers" services to mainland investors. In other words, mainland traders’ accounts instantly become "sell-only and withdrawal-only" outlets.
3. Full disconnection after two years: The government has set a transition period of about two years for concentrated rectification. When the deadline arrives, all domestic websites, trading apps, and supporting servers will be forcibly shut down, thoroughly cutting off trading channels for mainland users.

Market analysis indicates that this move is not only to regulate the securities market but also a heavy blow by the Chinese government to prevent "capital outflows."

Futu, Tiger respond swiftly: actively embracing regulation

In fact, this storm was foreshadowed long ago. As early as the end of 2022, the CSRC had already classified such businesses as illegal and demanded a halt to onboarding new mainland clients. Today’s measures mark a formal escalation from "request for rectification" to "substantive penalties and withdrawal."

Facing life-and-death tests, both companies responded swiftly today to quell the fire. Futu stated it would actively embrace regulatory guidance, emphasizing that it had already ceased accepting new mainland accounts, and that the proportion of mainland clients has significantly decreased; future compliance and rectification will be strictly enforced. Tiger Securities also issued a statement emphasizing "compliance first," asserting that overseas operations are normal and that they will fully cooperate with regulatory requirements.

However, judging by the pre-market collapse in stock prices, the capital market has clearly voted with its feet. With China’s largest "gold mine" sealed off, Futu and Tiger will have to seek difficult transformations and survival in the fiercely competitive Hong Kong and overseas markets.