Online brokers who are listed on NASDAQ and provide services to Chinese customers are preparing to further reduce their business in China. This is exactly when the Chinese government strengthens the control of private enterprises, capital escape, and data flow.
The Wall Street Journal quoted people familiar with the matter and revealed that Futu Holdings and Tiger Brokers are planning to remove applications that allow their customers to trade overseas stocks from Chinese online stores.
A spokesman for Tiger Securities confirmed the matter, saying that the company will remove its trading platform from Chinese app stores on Thursday (May 18).The company said that this adjustment is to comply with the China Securities Regulatory Commission's requirements for cross -border business in China, while the number of customers in the stocks will not be affected by this adjustment.
According to a regulatory announcement, Futu Holdings said that it will be removed from Futubull in China from Friday (19th).Program transactions.
After the above news was announced, Futu Holdings and Tiger Securities closed down 4.4%and 7.4%on Tuesday (16th), respectively.
The China Securities Regulatory Commission issued a statement in December last year, saying that the two brokers conducted cross -border securities business for domestic investors. According to relevant laws and regulations, their behavior has constituted illegal business securities business.Both Futu Holdings and Tiger Securities provide services to Chinese citizens who have held US dollars and other currencies in foreign bank accounts. This business has also attracted Chinese financial companies and multinational banks and institutions.
It is reported that the two securities firms are reducing services in China. At present, many companies are facing difficult issues to operate in China.In recent weeks, China ’s regulators have strengthened the review of foreign companies, including questioning the employees of the Shanghai Office of the Shanghai Office of the consulting agency, and the detention of the US Smart Group of the United States due to the U.S. due diligence company.Foreign executives are increasingly worried that the boundaries of services in China will change.
The Wall Street Journal quoted people familiar with the matter and said that the impact of Futu Holdings and Tiger Securities's application may spread outside the two companies and further weaken confidence in China's regulatory direction.
Futu Holdings and Tiger Securities have popular retail trading applications similar to Robinhood Markets in the United States.Fore investors in China and other regions use the application transactions of these two companies to trades stocks listed on major international exchanges in the United States, Hong Kong, and other regions and invest in other financial investment.
This industry is in a gray area, because these companies are restricted by regulatory agencies in the business, such as Hong Kong and Singapore, and at the same time provide services to citizens in China, and different rules in the Chinese markets.Futu Holdings is registered in the Cayman Islands, and is headquartered in Hong Kong. China Tencent is its major shareholder.Tiger Securities is also registered in the Cayman Islands and is headquartered in Singapore and Beijing.
To serve customers in China, like many international financial institutions abroad, Futu Holdings and Tiger Securities use an existing regulations in China.The RMB of $ 50,000 was transferred abroad.
According to people familiar with the matter, due to regulatory pressure, Futu Holdings and Tiger Securities will remove certain applications in the online application store in China before Friday.After being stopped by the Chinese regulatory agency last December, the two companies stopped accepting new customers online.These insiders said that the application of these applications may further weaken its customer foundation.Existing customers can still use the services of these companies.
