- Chinese online brokers Futu Holdings Ltd FUTU and UP Fintech Holding Ltd TIGR admitted proactive compliance with relevant regulations.
- Futu contacted the Task Force immediately after that and had completed all the rectification work in satisfaction of the relevant opinions and regulatory requirements by August 2, 2019.
- The companies addressed issues raised by the Special Task Force on the Regulation of Apps as far back as July 2019, Bloomberg reports.
- The official newspaper of the Communist Party highlighted risks faced by the firms amid Beijing’s continuing crackdown on private enterprise.
- The People’s Daily said online brokerages operating overseas were susceptible to violating data privacy rules and were in the spotlight as China’s personal information protection law takes effect on November 1.
- The article pointed to Tencent Holdings Ltd TCEHY-backed Futu and Xiaomi Corp XIACY XIACY-supported Up Fintech as examples.
- User data of both brokers are at risk of being compromised as they are required to provide certain information to the U.S. SEC.
- Futu and Up Fintech have been operating in a gray area, allowing millions of Chinese investors to evade capital controls to trade shares offshore in Hong Kong and New York markets.
- Price Action: FUTU shares traded lower by 2.72% at $71.80, and TIGR shares traded lower by 1.47% at $8.07 in the premarket session on the last check Friday.
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