TechFlow News: On May 22, the China Securities Regulatory Commission (CSRC) initiated an investigation and issued a prior notice of administrative penalty against TigerBrokers (NZ) Limited, Futu Securities International (Hong Kong) Limited, and Longbridge Securities (Hong Kong) Limited—and their related domestic and overseas entities—for illegally conducting securities business within mainland China. TigerBrokers, Futu Securities, and Longbridge Securities—and their related domestic and overseas entities—conducted securities trading marketing and promotion, processed trading instructions, and provided other related securities business services within mainland China—and derived revenue therefrom—without obtaining CSRC approval or licenses for securities brokerage or margin trading and short-selling operations. Such conduct violates Article 120 of the Securities Law and constitutes illegal operation of securities business. Pursuant to Articles 202 of the Securities Law, 136 of the Securities Investment Fund Law, and 132 of the Futures and Derivatives Law, the CSRC intends to confiscate all unlawful gains obtained by TigerBrokers, Futu Securities, and Longbridge Securities—and their related domestic and overseas entities—and impose strict administrative penalties in accordance with law. The parties concerned have the right to make statements, present defenses, and request a hearing regarding the proposed administrative penalties; the CSRC will fully consider the parties’ opinions before rendering a final administrative penalty decision in accordance with law.
U.S.-listed Up Fintech (TIGR.O) and Futu Holdings (FUTU.O) plunged sharply in pre-market trading: Up Fintech (TIGR.O) fell over 10%, while Futu Holdings (FUTU.O) dropped over 5%.
