Futu Holdings Ltd. Sponsored ADR Class A (FUTU.US) responds to regulatory penalties: will actively cooperate with the relevant work of the China Securities Regulatory Commission.

On May 22, the China Securities Regulatory Commission announced serious measures to investigate illegal cross-border business practices by institutions such as Futu. In response, Futu Holdings Ltd. Sponsored ADR Class A (FUTU.US) issued a statement stating that it had received a preliminary notice of administrative penalties from the China Securities Regulatory Commission and the Shenzhen Securities Regulatory Bureau regarding the company's securities business operations in mainland China. The notice pointed out that the related entities of Futu in mainland China and Hong Kong had conducted securities business, public fund sales, and futures business without the approval or relevant licenses from the China Securities Regulatory Commission, in violation of the laws of the People's Republic of China on Securities, Investment Funds, and Futures and Derivatives. The China Securities Regulatory Commission intends to order the correction of the behavior of the related entities, prohibit their activities, confiscate illegal gains, and impose fines totaling approximately 1.85 billion RMB. In addition, the China Securities Regulatory Commission intends to fine the company's founder and CEO, Mr. Li Hua, 1.25 million RMB. The above-mentioned proposed penalties will be further discussed with the company and ultimately determined by the China Securities Regulatory Commission. Futu will actively cooperate with the relevant work of the China Securities Regulatory Commission. The company has maintained close communication with the China Securities Regulatory Commission and has continuously implemented rectification measures for its operations in mainland China. As of the first quarter of 2026, approximately 13% of the company's total asset clients are from mainland China. Meanwhile, with the company's ongoing expansion into international markets, the number of overseas asset clients is steadily increasing. The company's operations in Hong Kong and overseas markets are running as usual.