State media questions Futu, Tiger Brokers’ ability to meet requirements of China’s strict new data protection law
- Futu said it is checking the way it handles Chinese investors’ personal information after state media questioned the practices of online brokers
- People’s Daily said risks exist in the use of Chinese citizens’ personal data by online brokers in conducting cross-border trading
“Futu has also maintained regular self-examination and self-inspection to further ensure compliance. We have always been actively communicating with regulators, strengthening training on personal information protection, and enhancing the awareness and capacity of personal information protection,” the Shenzhen-based company said in a written reply, adding that it is enhancing its ability to protect personal data.
The People’s Daily, a Chinese Communist Party mouthpiece, said earlier on Thursday that risks existed for online brokers such as Tencent Holdings-backed Futu and Xiaomi-backed Tiger Brokers in the protection of user data. Such technology firms face challenges in meeting the requirements of the new legislation that was passed in August and will take effect on November 1, the newspaper said, citing a lawyer.
Tiger did not reply to an emailed request for comment, while Futu declined to provide details of specific measures it will take to satisfy the new law.
The People’s Daily article sent the shares of both Futu and Tiger’s parent UP Fintech plunging by more than 11 per cent before the market opened in the US.
