#TradFi交易分享挑战

Engaged in illegal cross-border business expansion and under investigation—Futu's pre-market stock once plunged over 40%

The China Securities Regulatory Commission and seven other departments jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Activities." The overall requirement of the plan is to, after two years of concentrated rectification, fully eliminate illegal cross-border operations by overseas securities, futures, and fund institutions (hereinafter referred to as overseas institutions), and to achieve the goal of "resolutely banning illegal activities and safely clearing existing ones." Once the news broke, Futu Securities, whose main business relies on "Futu NiuNiu" to provide Hong Kong and U.S. stock trading services for domestic users, was said to have "the sky falling," with its stock price dropping sharply in response.

In addition, the China Securities Regulatory Commission lawfully initiated investigations and issued administrative penalty notices to relevant domestic and overseas entities, including Tiger Brokers (NZ) Limited (hereinafter referred to as Tiger), Futu Securities International (Hong Kong) Limited (hereinafter referred to as Futu), and Changqiao Securities (Hong Kong) Limited (hereinafter referred to as Changqiao), for engaging in illegal securities business activities within China. Tiger, Futu, and Changqiao, without approval from the China Securities Regulatory Commission and without obtaining licenses for securities brokerage or securities margin trading, engaged in securities trading marketing, transaction instruction processing, and other related securities services within China to generate related revenue. Simply put, Futu Holdings not only illegally provided offshore securities services to domestic clients but also lacked the most basic qualification to operate securities business domestically. This is undoubtedly a "double blow," effectively uprooting the company.

Next, there may be a run on the stock. Little Wealth God suggests that family members with funds in "Futu NiuNiu" withdraw their money next week—after all, fund safety is more important than anything! $FUTU