Futu Holdings, a Chinese brokerage firm listed on Nasdaq, held a media briefing in Hong Kong on July 13. Futu Securities’ Managing Director Sze Tak-yuan said it expects its Mainland China business to gradually shrink; as of the end of March, the share of its Mainland China funding accounts in its total accounts had fallen to 13%, and those accounts represented 17% of customers’ total assets. Financially, for Q1 through March, net profit was HK$831 million.
Futu Holdings’ stance on rectification and Hong Kong business commitments
According to comments from Sze Tak-yuan, Managing Director of Futu Securities, Futu believes the China Securities Regulatory Commission’s crackdown is a “widespread industry issue,” rather than a penalty targeting only Futu; in its statement that “compliance is Futu’s core strength,” it said it would “carry out rectification as soon as possible.”
Sze refused to disclose the specific proportion of Mainland China funding accounts after the punishment but stressed that it would “resolve compliance issues by adhering to the customer-first principle.” Regarding its Hong Kong business, Sze said: “Our original purpose for opening retail stores is to serve Hong Kong investors. As long as there is demand in a certain region, we will open physical stores there.”
Futu currently has eight physical retail stores in prime locations in Hong Kong, offering account-opening consultations, in-person verification, technology experience zones, and investment seminars; Futu said that currently, one out of every two adult residents in Hong Kong is its customer.
Financial impact and compliance rectification timeline: RMB 1.85 billion fine
According to reports, the main financial impact on Futu Holdings from China’s regulators is as follows:
China regulatory fine: RMB 1.85 billion (about $272 million)
Q1 2026 net profit: HK$831 million (about $106 million)
Q1 net profit in the same period last year: HK$2.15 billion
Net profit decline: about 61.3%
Mainland China funding account share (as of end of March 2026): 13% (17% of customers’ total assets)
Rectification requirement: complete rectification within two years and completely stop providing illegal trading services in Mainland China
Stop accepting new Mainland customers: May 2025
Common questions
Why does Futu Holdings expect the Mainland business to keep shrinking?
According to reports, the CSRC ordered Futu to complete rectification within two years and completely stop providing illegal trading services in Mainland China; Futu had already stopped accepting new Mainland customers with identity cards in May 2025. Sze said the Mainland business share “will definitely gradually decrease,” and the company is currently prioritizing compliance issues; as of March 2026, the Mainland China funding accounts had fallen to 13% of total accounts.
What are the main reasons for Futu’s Q1 net profit plunge of 61%?
According to reports, as of the quarter ended March 2026, net profit fell sharply from HK$2.15 billion in the same period last year to HK$831 million, mainly because China’s regulators imposed a RMB 1.85 billion fine (about $272 million) on Futu; the specific details of actual operating profitability should be based on Futu’s official financial report.
How does Futu respond to the impact of the Mainland business shrinkage?
According to Sze Tak-yuan’s remarks, Futu’s response strategy includes: maintaining a target of 800,000 net new paying customers in 2026; continuing to push forward its globalization strategy (overseas markets have strong growth momentum); maintaining investments in its eight physical stores in Hong Kong; and emphasizing that one out of every two adults in Hong Kong is its customer, which the company believes still has huge growth potential in the local market.
