The China Securities Regulatory Commission issued a statement against Futu and UP Fintech Holding for conducting unlawful securities businesses and banned them from soliciting new mainland clients.
Futu and UP Fintech have conducted cross-border securities business without regulatory consent, according to a statement by the China Securities Regulatory Commission (CSRC).
The online brokerages have been asked to take corrective measures, such as halts against soliciting new business from mainland China clients. Existing mainland clients will still be allowed to trade on the platforms but new money must not flow into their accounts unlawfully, the CSRC added.
Futu Listing Plans
CSRC’s statement was made one day after New York-listed Futu announced that it would delay its listing plans in Hong Kong, adding that it was «clarifying certain matters concerning the group with the Hong Kong Stock Exchange», according to a filing.
In response to the CSRC, the Tencent-backed firm said it would cooperate with the regulator and rectify its business accordingly. UP Fintech made a similar statement, adding that 90 percent of its new clients are sourced from markets outside mainland China, including Hong Kong, Singapore and the US.
