Futu receives regulatory investigation and penalty notice from CSRC

Futu Holdings Limited (Futu) has received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission and its Shenzhen bureau (CSRC) in connection with the company's operations in mainland China.

The CSRC states that certain Futu entities in mainland China and Hong Kong (the related companies), without obtaining the requisite licences or approval, conducted securities business, public fund sales business and futures business in mainland China, in violation of the Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law of the People's Republic of China. The CSRC proposes to order the related companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB 1.85 billion (approximately $271 million). In addition, the CSRC proposes to impose a personal fine of RMB 1.25 million (approximately $183,575) on Li Hua,  founder and CEO of the company.

The proposed penalty remains subject to further proceedings and the final determination by the CSRC. The company is entitled to submit statements, present defences, and request a hearing. The company will fully cooperate with the CSRC and exercise its lawful rights to safeguard the legitimate interests of the company and its shareholders.

The company has maintained ongoing communication with the CSRC and implemented rectification measures in relation to its mainland China operations. As of the end of the first quarter of 2026, funded accounts from mainland China accounted for approximately 13% of the company's total funded accounts. Meanwhile, as the company continues to scale across international markets, the number of overseas-funded accounts has continued to grow steadily. Business operations in all regions outside of mainland China remain normal.

Re-disseminated by Wealth and Society