Online stock brokers Futu, UP Fintech to remove apps from Chinese mainland
Published: May 17, 2023 12:16 AM
China Securities Regulatory Commission in Beijing Photo:VCG

China Securities Regulatory Commission in Beijing Photo:VCG

Two online stock brokers Futu Holdings and UP Fintech Holding, also known as Tiger Trading, said on Tuesday they would remove their trading apps from the Chinese mainland market on May 18 and 19 respectively, in order to meet regulatory requirements. 

Shares in Futu Holdings declined by 8.92 percent in pre-market trading, and shares in Tiger Trading were down by 8.07 percent as of press time.

The two companies both said in their announcements that the trading of existing app users can be processed normally, and the app downloads outside the Chinese mainland will not be affected. 

The China Securities Regulatory Commission (CSRC) announced on December 30, 2022 that it would continue the rectification of the cross-border stock brokerage of Futu Holdings and UP Fintech Holding, saying that the two companies had provided illicit cross-border stock business to Chinese mainland investors without permission from the regulator.  

The CSRC said it would halt the expansion of the two companies' new businesses, forbidding more investment from the Chinese mainland and new user registration. The existing business would be allowed to operate but with limited fund transfer sources, said the CSRC. 

In November 2022, the CSRC summoned senior managers of Futu Holdings and UP Fintech Holding, stressing the need to regulate their cross-border brokerage for mainland investors. 

Liu Dingding, a veteran internet industry observer, told the Global Times on Tuesday that online stock brokers must operate their business according to the regulations, adding that China's regulation mechanism is getting more sophisticated and comprehensive. 

Global Times