Online brokerages Futu, UP Fintech slump on China clampdown plans

Haitong International Securities

06/07/2021 15:13

** Shares of Tencent-backed Futu Holdings  FUTU.O  down 13%,
while peer UP Fintech  TIGR.O  falls 15% on Tues as Beijing
clampdown hits the Chinese online brokerages
    ** China says will step up supervision of country's firms
listed offshore, days after Beijing launched cybersecurity
investigation into ride-hailing giant Didi Global Inc  DIDI.N 
on heels of its U.S. IPO  urn:newsml:reuters.com:*:nL2N2OI0SQ
    ** New measures look to improve regulation of cross-border
data flows and security, crack down on illegal activity, punish
fraudulent securities issuance, market manipulation and insider
trading - China's cabinet
    ** FUTU and TIGR both made their U.S. debuts in Mar 2019
    ** Even with Tues decline, FUTU shares up ~210% YTD
    ** TIGR shares on track for 4th straight session decline,
but still up >170% in 2021
    ** Both stocks have benefited from speculative retail
trading in China

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))