Futu and Tiger Brokers Disclose Regulatory Penalties, Total Confiscated Amount Exceeds 2.2 Billion Yuan

On Friday evening, Futu Holdings and Tiger Brokers both disclosed that they had received regulatory notices from the China Securities Regulatory Commission (CSRC), concerning their unauthorized cross-border securities, fund, and futures business operations in mainland China. According to the disclosed amounts from both companies, Futu is expected to be fined approximately 1.85 billion yuan, while Tiger's related subsidiaries are fined and their illegal proceeds confiscated totaling approximately 411.2 million yuan.

Futu Holdings Expected to be Fined Approximately 1.85 Billion Yuan

Futu Holdings stated that the company received an investigation notice and a preliminary administrative penalty notice from the China Securities Regulatory Commission and its Shenzhen branch. The CSRC intends to order the relevant companies to correct or cease the relevant actions, confiscate illegal profits, and impose a penalty, with a total proposed fine of about 1.85 billion yuan, equivalent to 271 million US dollars.

The CSRC pointed out that some entities of Futu in mainland China and Hong Kong, without obtaining the required permits or approvals, have been conducting securities business, public fund sales, and futures business in mainland China. The relevant actions have been determined to violate the Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law of the People's Republic of China.

In addition to corporate-level penalties, the CSRC also intends to impose a personal fine of 1.25 million yuan on Futu Holdings' founder and CEO, Li Hua, equivalent to about 183,575 US dollars. Futu Holdings stated that the proposed fine is still subject to further procedures and the final decision of the CSRC.

Tiger Brokers' Subsidiaries Fined and Confiscated Approximately 411.2 Million Yuan

Tiger Brokers announced that several of the company's subsidiaries received a notice from the Beijing Regulatory Bureau of the China Securities Regulatory Commission. The Beijing Securities Regulatory Bureau has initiated an investigation into the alleged illegal securities, fund, and futures business activities of the aforementioned subsidiaries and determined that these subsidiaries have conducted unlicensed cross-border securities business in mainland China, as well as illegal activities involving funds and futures business.

Based on the results of the investigation, the Beijing Securities Regulatory Bureau imposed a combined administrative penalty of approximately 308.1 million yuan on Tiger Brokers' subsidiaries and confiscated approximately 103.1 million yuan of illegal proceeds. The company's director and CEO, Wu Tianhua, also received a warning and was fined 1.25 million yuan.

Tiger Brokers disclosed that, as of the end of 2025, the retail customer assets in mainland China within the company's consolidated financial statements accounted for about 10% of the total customer assets. The company stated that it sincerely accepts the above penalty decisions, is fully cooperating with the regulatory authorities, and will strictly implement the various corrective measures required by the regulatory authorities.