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Futu Holdings Limited (Chinese: 富途) is a Hong Kong-headquartered Chinese holding company in digitized securities brokerage and wealth management platform in 8 markets globally, including Hong Kong, Singapore, Australia, and the United States. Futu was founded in Hong Kong in 2012 and listed on Nasdaq on March 8, 2019.[3]

The largest investor of Futu as of 2019 is Tencent. Founder Leaf Li is a former employee of Tencent.[4] The company originally traded as NASDAQ symbol FHL,[5] but changed to FUTU.

Futu has over 29 million users globally. Notably, Futu has no presence and business in Mainland China.[6]

Business

Moomoo

Main article: Moomoo (company)

Moomoo Financial Inc., a subsidiary of Futu, is a U.S.-based financial services company headquartered in Palo Alto, California that allows customers to trade US stocks, Chinese stocks, Hong Kong stocks, ETFs, and options.[7] Moomoo, Inc was founded in March 2018. The platform was created specifically for U.S. customers.[8][9][10]

Ele Bank Limited

In 2024, Futu announced that it had completed a HKD440 million investment in Gravitation Fintech HK Limited, the parent company of Airstar Bank, a Hong Kong licensed virtual bank. Following the investment, Futu has become the second largest beneficial owner holding indirectly 44.11% of Airstar Bank. In 2026, Futu confirmed that it increased its investment in Airstar Bank in September last year, subscribing HK$500 million for newly issued shares in Gravitation Fintech HK. Following completion, Futu’s indirect shareholding in Airstar Bank rose to 68.43%, making it the bank’s controlling shareholder. Xiaomi, a founding shareholder of Airstar Bank, saw its indirect interest diluted from 50.3% to 28.41%.

In April 2026, Airstar Bank is renamed to Ele Bank Limited.

Controversies

CSRC Orders Futu and Tiger Brokers to Cease New Mainland China Customer Registrations

In late 2022, the China Securities Regulatory Commission (CSRC) ordered Futu and Tiger Brokers to stop accepting new customers from mainland China. This followed ongoing concerns from authorities since 2021 about the regulatory compliance of their cross-border brokerage operations. While the platforms are no longer allowed to onboard new mainland-based investors, existing customers can continue trading, but without the ability to add new capital. Additionally, both brokers were required to pull their trading apps from mainland China.[11][12]

2026 CSRC Enforcement Action and Cross-Border Rectification

In May 22, 2026, CSRC announced the formal initiation of administrative penalty proceedings against Futu Holdings, Tiger Brokers and Longbridge Securities. Regulatory authorities ruled that these brokerages had illegally conducted cross-border securities, fund sales, and futures brokerage businesses targeting investors within mainland China without obtaining the necessary domestic licenses or regulatory approvals.[13]

Under a rectification framework jointly formulated by the CSRC and other relevant government departments, authorities announced plans to lawfully confiscate all illegal gains generated by both the domestic and overseas entities of these cross-border brokerages, alongside imposing severe administrative fines. To safeguard market stability, the cleanup plan established a two-year transition window, allowing existing mainland Chinese investor accounts to be systematically unwound or migrated through legally compliant alternative channels.[14]

Because the clawback and “confiscation of illegal gains” directly threatened the historical profit reserves of both major brokerages, the announcement triggered intense panic in the financial markets. Upon the opening of the U.S. stock market, the Nasdaq-listed ADRs of Futu Holdings plummeted by 39.49% to $75.47, while UP Fintech Holding sank by 38.37% to $3.63.[15]

Alleged Violation of NFA Requirements

In February 2025, Futu Futures was ordered by the National Futures Association (NFA) to pay a $100,000 fine due to regulatory violations, specifically for failing to maintain required supervision and records. [16]

References

  1. ^ “2024 Q3 Financial Report”. Futu. 2024-11-19.
  2. ^ “Annual Reports”. Futu. 2024-11-19.
  3. ^ Cheng, Evelyn (March 20, 2019). “China’s tech-savvy millennials are fueling interest in US stocks”. CNBC.
  4. ^ “Futu Holdings Ltd – Company Profile and News”. www.bloomberg.com.
  5. ^ “Futu Announces NASDAQ Ticker Symbol Change to “FUTU”“. news.usaonline.us.
  6. ^ “China orders Futu, Tiger to stop adding new onshore traders”. South China Morning Post. 2022-12-30. Retrieved 2024-11-27.
  7. ^ “Moomoo – Stock trading App with free commissions, investing in Options, ETFs”. www.moomoo.com.
  8. ^ “SECURITIES AND EXCHANGE COMMISSION FORM F-1 REGISTRATION STATEMENT Futu Holdings Limited”. U.S. Security and Exchange Commission. Retrieved 6 May 2020.
  9. ^ “Moomoo Trading App Review 2021 + 8 Free Stocks (Worth $2,200)”.
  10. ^ Wang, Eudora (March 18, 2019). “Tencent-Backed Online Broker Futu Targets US Expansion After NASDAQ IPO”.
  11. ^ “China orders Futu, Tiger to stop adding new onshore traders”. South China Morning Post. 2022-12-30. Retrieved 2024-11-27.
  12. ^ “China’s Tiger Brokers Eyes Singapore’s Rich to Drive Growth”. Bloomberg.com. 2024-06-05. Retrieved 2024-11-27.
  13. ^ Chau, Jason (2026-05-22). “China to Penalize Nasdaq-Listed Brokers Amid Cross-Border Trading Crackdown”. Dow Jones Newswires via Morningstar. Retrieved 2026-05-22.
  14. ^ “CSRC: Crackdown on Illegal Cross-border Securities, Futures and Fund Business Activities”. AASTOCKS Financial News. 2026-05-22. Retrieved 2026-05-22.
  15. ^ “Chinese broker firms tumble premarket after probe”. Breaking the News. 2026-05-22. Retrieved 2026-05-22.
  16. ^ “NATIONAL FUTURES ASSOCIATION BEFORE THE BUSINESS CONDUCT COMMITTEE”. National Futures Association. 2025-02-05. Retrieved 2024-11-27.