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Brokerage Shares Plunge over Licence Warning: Securities Times

Share fall follows People’s Bank of China official warning that some overseas securities institutions have not obtained domestic licences.

News that online brokerages Futu and UP Fintech will remove apps in mainland China sparked a heavy selloff in their shares in New York.
Futu celebrates its US listing in 2021. The firm and UP Fintech (the 'Tiger Brokers') will remove their apps in China this week. Photo: Nasdaq.


Two big Chinese brokerages listed in the US saw their shares plummet on Thursday after authorities warned unlicensed dealers they were operating illegally, the Securities Times reported on Friday.

Sun Tianqi, director of the Financial Stability Bureau at the People’s Bank of China, stated that some overseas securities institutions have not obtained domestic licences and only hold overseas permits.

Nasdaq-listed Futu Holdings fell as much as 30% before recovering to 12% down at the close. Tiger Brokers dropped more than 22% on the Nasdaq before closing down 17%.

Read the full report: Securities Times




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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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