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Futu's Mainland China Asset Client Ratio Reduces to 13%; UP Fintech Around 10%
Recommend 5 Positive 1 Negative 11 |
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The China Securities Regulatory Commission (CSRC) filed cases against UP Fintech Holding Limited (TIGR.US), Futu Holdings Limited (FUTU.US) and Longbridge, and plans to confiscate all illegal gains of their relevant onshore and offshore entities and impose strict penalties in accordance with the law. US-listed Futu Holdings Limited (FUTU.US) and UP Fintech Holding Limited (TIGR.US) disclosed that they had each received proposed penalty notices. Futu is proposed to be fined and confiscated approximately RMB1.85 billion, while UP Fintech is proposed to be fined and confiscated approximately RMB410 million, bringing the total fines and confiscations to exceed RMB2.2 billion. Futu responded that the relevant guidelines and regulations represent unified requirements for the entire industry, and the company will steadily advance related compliance work in strict accordance with regulatory requirements. The company had previously fully ceased opening accounts for applicants with Mainland China identities and has continued efforts to combat fraudulent account openings, rejecting tens of thousands of non-compliant applications over the past two years. As of the end of 1Q26, the proportion of asset-holding clients from Mainland China accounting for the group's total asset-holding clients reduced to 13%. UP Fintech stated that it will strictly follow the industry-wide regulatory requirements and steadily advance related compliance work. Since 2023, the company has fully stopped opening accounts for users with Mainland China identities, and simultaneously ceased external advertising, marketing promotions and related activities, while continuously strengthening account reviews, identity verification and anti-fraud management mechanisms. As of the end of 1Q26, client assets from Mainland China accounted for approximately 10% of the group's total global assets. Longbridge noted that its licensed entities are regulated by offshore regulators including the Hong Kong Securities and Futures Commission. Longbridge emphasized that client funds are fully segregated from the company's operating funds and are kept in independent custodial bank accounts in accordance with regulatory requirements. US and Hong Kong equities held by clients are respectively custodied by the Depository Trust & Clearing Corporation (DTCC) in the United States and Hong Kong Securities Clearing Company Limited (HKSCC), and are protected by the Hong Kong Investor Compensation Fund (ICF). The company added that it will strictly implement rectification requirements and advance related arrangements in compliance with laws and regulations. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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