Futu Holdings receives preliminary notice from the China Securities Regulatory Commission, plans to be fined 1.85 billion RMB

The China Securities Regulatory Commission (CSRC) said that it has recently, in accordance with the law, filed a case for investigation into related domestic and overseas entities including Tiger, Futu Securities International (Hong Kong), and Changqiao Securities (Hong Kong) over their conduct of illegally operating securities businesses within China, and has issued a prior notice of administrative penalties.

Futu Holdings announced that it has received investigation notices and a prior notice letter regarding administrative fines from the CSRC and its Shenzhen office. The CSRC stated that certain Futu-affiliated companies in China and Hong Kong conducted securities business, public fund sales business, and futures business in China without obtaining the required permits or approvals, in violation of the Securities Law, the Law on Securities Investment Funds, and the Law of the People’s Republic of China on Futures and Derivatives.

The CSRC intends to order the relevant companies to correct or cease such conduct, confiscate illegal gains, and impose fines. The total proposed fine amount is approximately 1.85 billion yuan (RMB, the same applies hereafter). In addition, the CSRC intends to impose an individual fine of 1.25 million yuan on the company’s founder and Chief Executive Officer, Li Hua.

Futu Holdings said its total revenue for full-year 2025 was approximately $2.935 billion; net profit was approximately $1.452 billion, which would equate to a fine of about $271 million, representing 9% of Futu’s revenue last year or 18.6% of net profit.

Futu Holdings said the proposed fines are still subject to further procedures and the CSRC’s final decision.