Penalty notices issued! China imposes heavy fines on Futu of RMB 1.85 billion and Tiger of RMB 410 million, and the two CEOs are removed from their posts under joint liability.

Chinese Concept Cross-Border Brokerage Firms' "Fines" Officially Implemented!
The China Securities Regulatory Commission (CSRC) announced today (22nd) the specific fines for Futu Holdings and Tiger Securities.
Futu received a heavy penalty of up to 1.85 billion RMB (about 271 million USD), while Tiger Securities was confiscated and fined a total of about 410 million RMB;
The founders of both companies, Li Hua and Wu Tianhua, were also jointly penalized, each fined 1.25 million RMB.
Faced with huge fines and a pre-market plunge of over 30% in US stocks, the two companies quickly issued statements to reassure the market, emphasizing that mainland client assets have dropped to around 10%, and overseas operations are unaffected.
(Background summary: China cracks down on Futu and Tiger, "biggest winners" are Ondo Finance? RWA becomes a capital escape route, tokens jump 17% in a single day)
(Additional background: Futu and Tiger plunge 40% pre-market! China enacts "nuclear-level" regulation: mainland clients can only sell, not buy, starting today)

Table of Contents

Toggle

• Futu faces a heavy fine of 1.85 billion RMB, founder Li Hua held jointly responsible
• Tiger Securities confiscated and fined 410 million RMB, CEO also warned
• Urgent market reassurance: mainland assets only 10%, overseas business normal

The shocking regulatory storm over Chinese concept brokerages on Wall Street finally reveals its most deadly "sky-high fines" card.

After the CSRC announced strict crackdowns on illegal cross-border operations, Futu Holdings (FUTU) and Tiger Securities (TIGR, now known as Xiangshang Rongke) issued official announcements today (May 22, 2026), confirming they had received prior notice of administrative penalties from regulators.
The massive fines thoroughly mark the end of the golden era of these brokerages' reliance on the Chinese mainland market.

Futu faces a heavy penalty of 1.85 billion RMB, founder Li Hua held jointly responsible

According to Futu Holdings' announcement, the company has received investigation notices from the CSRC and its Shenzhen branch.
The authorities pointed out that Futu's entities in mainland China and Hong Kong operated illegal securities, public fund sales, and futures businesses within China without the necessary permits or approvals, severely violating the Securities Law, Securities Investment Fund Law, and Futures and Derivatives Law.

In response, the CSRC plans to order Futu to immediately correct and cease such violations, while imposing devastating economic sanctions:

• Heavy fine: Seizing illegal gains and imposing a fine totaling 1.85 billion RMB (about 271 million USD).
• Top executive penalty: The CSRC proposes a 125,000 RMB (about 18,300 USD) fine on founder and CEO Li Hua personally.

Futu stated that the proposed fines are still subject to further administrative procedures and the final decision by the CSRC.

Tiger Securities confiscated and fined 410 million RMB, CEO also warned

Another major cross-border brokerage, Tiger Securities (Xiangshang Rongke), faces the same severe fate.
According to the announcement, the Beijing regulatory bureau completed its investigation of its subsidiaries, confirming illegal cross-border activities related to securities, funds, and futures without proper licensing.

The Beijing regulator issued clear penalties:

• Heavy fine: Confiscation of approximately 103.1 million RMB of illegal gains, plus an additional 308.1 million RMB in administrative fines (total about 410 million RMB).
• Top executive penalty: Wu Tianhua, the company's director, CEO, and actual controller, received an official warning and was fined 125,000 RMB.

Urgent market reassurance: mainland assets only 10%, overseas business normal

In response to the sky-high fines and pre-market stock drops of over 30% to 40%, both companies today attempted to calm market sentiment with data, downplaying the impact of shrinking Chinese market assets on overall operations.

Tiger Securities emphasized that compliance has always been a priority, all business operations remain normal, and they will actively cooperate with regulators.
Data shows that by the end of 2025, retail client assets in mainland China accounted for only about 10% of the company's total client assets.

Futu also stated that it has already stopped opening new accounts for mainland applicants and strictly rejected tens of thousands of non-compliant account applications; previous reports indicated that mainland client assets have dropped to about 13% of total assets.

Although both companies are actively demonstrating a "cutting ties" and shifting toward overseas expansion, the massive cash outflow of hundreds of millions of dollars and the complete shutdown of China's huge growth engine make it unlikely for the capital market to regain confidence in their valuations in the short term.