Futu, Tiger Brokers, and Long Bridge respond to regulatory penalties: commit to advancement in restructuring as required

The China Securities Regulatory Commission (CSRC) announced on Friday that it has initiated investigations into Tiger Brokers NZ Limited (Tiger Brokers), Futu Securities International Hong Kong Limited, and Changqiao Securities Hong Kong Limited, along with relevant domestic and foreign entities, and has given prior notice of administrative penalties, citing illegal securities business operations within the country, among other activities.

In response, Futu, Tiger, and Changqiao Securities stated that they would promote work according to regulatory requirements.

Tiger Brokers: Will actively cooperate, business operations are normal

Tiger responded by stating that it has taken note of the relevant notices and will actively cooperate with the related work strictly in accordance with regulatory requirements. Currently, the company's various business operations are normal. Tiger has always prioritized compliance and maintains close communication with regulatory authorities.

Tiger International stated that since 2023, the company has completely stopped opening accounts for users with mainland China identity, while also halting external advertising, marketing promotion, and activities, and continuously strengthening mechanisms for account audit, identity verification, and anti-fraud management. As of the end of the first quarter of 2026, mainland China client assets account for approximately 10% of the group's global total assets.

Futu stated that the guidelines issued by the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong are unified requirements for the entire industry, and the company will steadily promote compliance work in strict accordance with regulatory requirements.

Futu emphasized that it has previously stopped opening accounts for applicants with mainland identity and has been continuously striving against fraudulent account openings. Over the past two years, Futu has rejected tens of thousands of account applications that do not comply with rules; as of the end of the first quarter of 2026, the number of clients with assets in mainland China accounts for 13% of the total number of clients with assets in the group.

Changqiao Securities: Client assets are independently custodied and enjoy ICF protection

Changqiao Securities responded by stating that its licensed entities are regulated by the Securities and Futures Commission of Hong Kong and other overseas regulatory authorities, and that client funds are completely separated from company operational funds, preserved in independently custodied bank accounts as required by regulatory authorities; client holdings of US stocks and Hong Kong stocks are respectively custodied by the Depository Trust & Clearing Corporation (DTCC) and the Hong Kong Central Clearing and Settlement Corporation Limited (HKSCC), and enjoy protection from the Hong Kong Investor Compensation Fund (ICF).

Changqiao also stated that it will strictly implement various rectification requirements and promote related arrangements in accordance with laws and regulations.