No respite for Futu, Tiger Brokers as Chinese state media reiterate online services amount to ‘illegal financial activities’
- Chinese state media continue to slam online brokers, with the stinging criticism putting further pressure on their stock prices
- Futu Holdings’ share price has sunk 70.4 per cent from its peak in February, while Tiger Brokers has lost 81.5 per cent in the same period
The Economic Daily on Monday reiterated that the services offered by online brokers such as Nasdaq-listed Futu Holdings and Tiger Brokers were “typical illegal financial activities” and operating without regulatory approval, echoing comments made late last month by a central bank official.
Such financial activities were likely to become a tool for illegal capital outflows, and bear the risks of financial data leaking overseas, the newspaper said.
“Futu has been operating within the original framework of industry laws and regulations, the same as other peers in Hong Kong with certificates,” US-listed Futu said in a reply to a query from the Post on Monday. Futu has been under strict regulatory scrutiny and has received certificates to operate in Hong Kong since its founding, it added.
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Tiger Brokers, which is also listed in New York, did not reply to a request for comment.
