Futu Holdings revealed on Friday that it had received notice of an investigation and advance notice of a fine from the China Securities Regulatory Commission (CSRC), leading to a sharp decline in its share price before the market opened.
The total proposed fine amounts to 1.85 billion Chinese yuan, equivalent to about 271 million US dollars. Regulators also plan to impose a personal fine of CNY 1.25 million on Foto’s founder and CEO, Li Hua.
The CSRC and its office in Shenzhen allege that certain FUTO-related entities in mainland China and Hong Kong conducted securities trading, general fund sales and futures business in mainland China without required approvals.
According to the regulator, these actions violate the Chinese Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law. The authorities now propose ordering the company to cease or correct its activities, confiscate the gains associated with the violations, and impose financial fines.
The case is still subject to further proceedings. FOTO has the right to provide clarifications, present a defense, and request a hearing before any final decision is made.
Company response and wider scrutiny
Foto said it had been in contact with the regulator and had already implemented corrective measures related to its mainland operations. The company added that mainland China accounts represent about 13% of its total funded accounts until the end of the first quarter of 2026.
It also noted that its international business continues to expand, with overseas accounts growing steadily, while operations outside mainland China remain unaffected.
On the same day, Chinese authorities cited similar enforcement actions against other online brokerages, including the New Zealand unit of Tiger Brokers and Hong Kong-based entity LongBridge Securities.
The developments point to increased regulatory scrutiny of platforms offering cross-border investment services to mainland users, particularly where licensing requirements are not fully met.
Early this year, Futu Holdings reported strong financial results for 2025, with net profit doubling as revenue rose to more than $2.9 billion. Net income reached HK$11.3 billion (US$1.45 billion), registering a 108% increase over the previous year, while total revenues rose 68.1% to HK$22.8 billion.
Foto announces record growth in 2025
The company also improved gross profit margin to 87.1%, up from 82%, reflecting slower cost growth relative to revenue. This performance came as investors increased exposure to American technology stocks and the company expanded its presence in Asian markets.
Trading activity played a major role in the results, with total annual trading volume rising by 89.4% to HK$14.68 trillion. In the fourth quarter alone, trading volume reached a record high of HK$3.98 trillion, up 37.8% year-on-year. we Stocks
Stocks
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock and becoming a part owner of shares in a particular company or fund. However, stocks do not pay a fixed interest rate and are therefore not considered guaranteed income. As such, stock markets are often associated with risk. When a company issues bonds, it obtains loans from buyers. On the other hand, when a company offers shares, it sells shares
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock and becoming a part owner of shares in a particular company or fund. However, stocks do not pay a fixed interest rate and are therefore not considered guaranteed income. As such, stock markets are often associated with risk. When a company issues bonds, it obtains loans from buyers. On the other hand, when a company offers shares, it sells shares
Read this term It accounted for the majority of this activity worth HK$3.04 trillion, driven by strong client demand for AI-related stocks, according to the company.
Moomoo, also a subsidiary of Futu Launched a new feature that allows individual investors To connect their AI tools directly to it Trading platform
Trading platform
In Forex, a currency trading platform is software that brokers offer to their client base, giving them access as traders to the broader market. Most often, this reflects an online interface or mobile app, equipped with tools to process orders. Each broker needs one or more trading platforms to meet the needs of different clients. Being the backbone of the company’s offerings, the trading platform provides clients with quotes and a selection of real trading instruments
In Forex, a currency trading platform is software that brokers offer to their client base, giving them access as traders to the broader market. Most often, this reflects an online interface or mobile app, equipped with tools to process orders. Each broker needs one or more trading platforms to meet the needs of different clients. Being the backbone of the company’s offerings, the trading platform provides clients with quotes and a selection of real trading instruments
Read this term. The move places Moomoo among a growing number of brokers, including eToro and Robinhood, offering AI-driven investing features as competition in the retail trading space increases.
Momo too
It has expanded its cryptocurrency trading services For users in Texas and added a feature that allows US customers to deposit and withdraw cryptocurrencies directly. The move comes as more brokers expand their cryptocurrency offerings, such as IG Group, which recently obtained a UK regulatory license to offer cryptocurrency services and enable direct transfers for clients.
Futu Holdings revealed on Friday that it had received notice of an investigation and advance notice of a fine from the China Securities Regulatory Commission (CSRC), leading to a sharp decline in its share price before the market opened.
The total proposed fine amounts to 1.85 billion Chinese yuan, equivalent to about 271 million US dollars. Regulators also plan to impose a personal fine of CNY 1.25 million on Foto’s founder and CEO, Li Hua.
The CSRC and its office in Shenzhen allege that certain FUTO-related entities in mainland China and Hong Kong conducted securities trading, general fund sales and futures business in mainland China without required approvals.
According to the regulator, these actions violate the Chinese Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law. The authorities now propose ordering the company to cease or correct its activities, confiscate the gains associated with the violations, and impose financial fines.
The case is still subject to further proceedings. FOTO has the right to provide clarifications, present a defense, and request a hearing before any final decision is made.
Company response and wider scrutiny
Foto said it had been in contact with the regulator and had already implemented corrective measures related to its mainland operations. The company added that mainland China accounts represent about 13% of its total funded accounts until the end of the first quarter of 2026.
It also noted that its international business continues to expand, with overseas accounts growing steadily, while operations outside mainland China remain unaffected.
On the same day, Chinese authorities cited similar enforcement actions against other online brokerages, including the New Zealand unit of Tiger Brokers and Hong Kong-based entity LongBridge Securities.
The developments point to increased regulatory scrutiny of platforms offering cross-border investment services to mainland users, particularly where licensing requirements are not fully met.
Early this year, Futu Holdings reported strong financial results for 2025, with net profit doubling as revenue rose to more than $2.9 billion. Net income reached HK$11.3 billion (US$1.45 billion), registering a 108% increase over the previous year, while total revenues rose 68.1% to HK$22.8 billion.
Foto announces record growth in 2025
The company also improved gross profit margin to 87.1%, up from 82%, reflecting slower cost growth relative to revenue. This performance came as investors increased exposure to American technology stocks and the company expanded its presence in Asian markets.
Trading activity played a major role in the results, with total annual trading volume rising by 89.4% to HK$14.68 trillion. In the fourth quarter alone, trading volume reached a record high of HK$3.98 trillion, up 37.8% year-on-year. we Stocks
Stocks
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock and becoming a part owner of shares in a particular company or fund. However, stocks do not pay a fixed interest rate and are therefore not considered guaranteed income. As such, stock markets are often associated with risk. When a company issues bonds, it obtains loans from buyers. On the other hand, when a company offers shares, it sells shares
Stocks can be described as shares or shares in a company that investors can buy or sell. When you buy a stock, you are essentially buying a stock and becoming a part owner of shares in a particular company or fund. However, stocks do not pay a fixed interest rate and are therefore not considered guaranteed income. As such, stock markets are often associated with risk. When a company issues bonds, it obtains loans from buyers. On the other hand, when a company offers shares, it sells shares
Read this term It accounted for the majority of this activity worth HK$3.04 trillion, driven by strong client demand for AI-related stocks, according to the company.
Moomoo, also a subsidiary of Futu Launched a new feature that allows individual investors To connect their AI tools directly to it Trading platform
Trading platform
In Forex, a currency trading platform is software that brokers offer to their client base, giving them access as traders to the broader market. Most often, this reflects an online interface or mobile app, equipped with tools to process orders. Each broker needs one or more trading platforms to meet the needs of different clients. Being the backbone of the company’s offerings, the trading platform provides clients with quotes and a selection of real trading instruments
In Forex, a currency trading platform is software that brokers offer to their client base, giving them access as traders to the broader market. Most often, this reflects an online interface or mobile app, complete with tools for processing orders. Each broker needs one or more trading platforms to meet the needs of different clients. Being the backbone of the company’s offerings, the trading platform provides clients with quotes and a selection of real trading instruments
Read this term. The move places Moomoo among a growing number of brokers, including eToro and Robinhood, offering AI-driven investing features as competition in the retail trading space increases.
Momo too
It has expanded its cryptocurrency trading services For users in Texas and added a feature that allows US customers to deposit and withdraw cryptocurrencies directly. The move comes as more brokers expand their cryptocurrency offerings, such as IG Group, which recently obtained a UK regulatory license to offer cryptocurrency services and enable direct transfers for clients.
