China online broker ADRs dive on regulatory crackdown

Futu Holdings

22/05/2026 11:30

** U.S.-listed shares of Chinese online brokerages UP Fintech Holding TIGR.O and Futu Holdings FUTU.O slump more than 30% in premarket trading

** China launched a crackdown on cross-border activities that it accuses of illegally channel domestic money into overseas securities, futures and fund products

** The China Securities Regulatory Commission said it plans to impose penalties on online brokerages Tiger Brokers, a unit of UP Fintech, Futu and Longbridge for soliciting business in China without an onshore licence

** TIGR down 35% at $3.82, FUTU down 33.9% at $81.86

** The campaign targets overseas firms operating in China without approval and their domestic partners, setting a two-year grace period for them to wind down existing illegal operations

** KraneShares CSI China Internet ETF KEWB.N falls 4.5%, while iShares MSCI China ETF down MCHI.O 1.9%

 (Reporting by Sruthi Shankar)

 ((sruthi.shankar@thomsonreuters.com))