Nasdaq-listed online broker Futu Holdings on Friday said it received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission and its Shenzhen bureau over its mainland China operations.
The CSRC alleges that certain Futu entities in mainland China and Hong Kong conducted securities business, public fund sales business, and futures business in mainland China without obtaining the requisite licenses or approval, according to the company’s release. The regulator proposed total penalties of approximately RMB1.85 billion ($271 million), plus a personal fine of RMB1.25 million ($183,575) on founder and CEO LI Hua.
The proposed penalty remains subject to further proceedings and a final CSRC determination. Futu said it is entitled to submit statements, present defences and request a hearing, and that it will “fully cooperate” with the regulator.
Futu said mainland China funded accounts represented about 13% of total funded accounts at the end of Q1 2026, and that operations outside mainland China remain normal.
The action is part of a broader CSRC crackdown that also covers Tiger Brokers and Longbridge Securities, according to Investing.com. Futu shares fell 35.7% in pre-open trading on the news.
