The China Securities Regulatory Commission (CSRC) plans to fine Futu approximately 1.85 billion RMB for cross-border operations, accounting for about 18% of its projected Non-GAAP net profit in 2025. Futu's total revenue in 2025 is 22.85B HKD, with Non-GAAP net profit of 11.65B HKD, representing year-over-year increases of 68.1% and 101.9%, respectively. The market believes the company has the ability to pay, but stricter regulatory enforcement may continue to impact the industry's business models. The CSRC stated that some Futu entities in mainland China and Hong Kong conducted securities, fund, and futures businesses in mainland China without permission, which is a violation.

MarsBitNews

2026-05-22 15:45:51

Abstract generation in progress

Mars Finance News: On May 22, after the China Securities Regulatory Commission proposed penalties of about 1.85 billion RMB (about $271 million) against Futu-related cross-border business licensing activities, the market has turned its attention to its profitability and the level of real pressure it faces. Futu Holdings’ 2025 annual report shows that the company’s total revenue for the full year was HKD 22.847 billion, up 68.1% year over year; Non-GAAP net profit reached HKD 11.645 billion (about $149 million), up 101.9% year over year. Based on the scale of profits, the proposed penalty amount is estimated to account for about 18% of Futu’s 2025 Non-GAAP net profit. Market analysis believes that, given its current profitability, Futu has the capacity to bear the related fine, but tightening regulation of cross-border business licensing may continue to have a sustained impact on the industry’s future business models. Previously, the China Securities Regulatory Commission said that certain Futu entities in mainland China and Hong Kong carried out securities, fund distribution, and futures business in mainland China without permission, in violation of laws and regulations including the Securities Law.

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NightFlightPaperCrane

· 5h ago

The industry’s business model needs to be rebuilt. Just because Futu can stand up to it doesn’t mean smaller players can hold up.

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NightFlightPancake

· 10h ago

1.85 billion yuan fine, Futu's profit doubling this year is definitely affordable, but the signal is too obvious.

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DaoScraps

· 10h ago

Futu users are trembling, nothing will happen to the money in their accounts, right?

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GateUser-0f8d377b

· 10h ago

The amount of the fine looks intimidating, but the stock price reacted quite calmly; the market probably anticipated this early on.

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OrdersPlacedBeforeTheStorm

· 10h ago

The performance in 2025 was so impressive, but the year-end summary is this ticket.

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StainedGlassSun

· 10h ago

The gray area of cross-border brokerage firms has finally been cleared, so can we still happily trade US stocks in the future?

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Futu Holdings' net profit in 2025 reaches $1.49 billion, with the China Securities Regulatory Commission planning a fine amounting to approximately 18% of the profit.

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