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FUTU.US
id: 528, Created by Stan Vick Chase, Scout

China’s Regulator FUTU Investigation of Domestic Laws Violation

On December 30, 2022, China’s securities regulator (CSRC) reported that Futu Holdings (NASDAQ: FUTU) violated its domestic laws by allowing customers on the mainland to make cross-border trades.

On this news, FUTU's shares plunged 31% and the Company lost over $2.5 billion of its capitalization, seriously damaging investors.
  • As wrote the WSJ, The regulator also said it was requiring Futu to stop taking on or soliciting new domestic clients and customers, who aren’t allowed to open accounts.
  • The CSRC said it intends to dispatch officers to conduct on-site inspections on Futu.
  • The Company said in a statement that it will cooperate fully with the CSRC and take all necessary measures to comply with China’s laws and regulations.
Now, FUTU holders have all reasons to suspect that the Company, its Leaders, and its Service Providers grossly violated their investor rights, which led to material damages to the value of the securities positions.

Alleged Offence
Malpractice
Negligence
Omissions
Suspected Party
Directors
Management
Government Authority
Investment Bank
Service Provider
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
30 December 2022
Collecting participants…
Created by Stan Vick Chase, Scout

Futu Holdings Ltd

Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing...

    Ticker
    FUTU.US
    ISIN
    US36118L1061
    Sector
    Financial Services
    Industry
    Capital Markets
    Country
    USA
    Address
    Bangkok Bank Building, Hong Kong, Hong Kong