Futu Holdings Discloses Receipt of Investigation Notice and Preliminary Administrative Penalty Notice from the China Securities Regulatory Commission, with Proposed Total Fine of Approximately RMB 1.85 Billion

According to Wall Street Insights, Futu Holdings disclosed that it has received investigation notices and a pre-notification letter of administrative penalties from the China Securities Regulatory Commission (CSRC) and its Shenzhen Branch. The CSRC stated that certain Futu-affiliated companies in mainland China and Hong Kong conducted securities business, public fund sales business, and futures business in mainland China without obtaining the required licenses or approvals, allegedly violating the Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law. The CSRC intends to order the relevant companies to rectify or cease such activities, confiscate unlawful gains, and impose fines totaling approximately RMB 1.85 billion. Additionally, the CSRC intends to impose a fine of RMB 1.25 million on Li Hua, Futu’s founder and CEO.