Futu and UP Fintech to Remove Apps From Chinese App Store
On May 16, leading online brokers Futu Holdings and UP Fintech Holding Limited, known as “Tiger Brokers” in Asia, successively announced that their apps will be removed from app stores on the Chinese mainland.
According to the announcement released on May 16 by Futu Holdings, in response to the rectification requirements of China Securities Regulatory Commission (CSRC) for regulating cross-border securities business, it plans to remove Futubull from online application stores within the Chinese mainland starting from May 19, 2023. This is aimed at promoting full compliance with regulatory spirit within China.
Futu Holdings stated that existing clients in the Chinese mainland can still trade through the app without any impact on related services and operations. Downloading and using the app by users in Hong Kong and all other regions in the world are not affected.
SEE ALSO: Chinese Regulator Requires Rectification of Illegal Cross-border Operations of Brokerages Futu and UP Fintech
On the same day, Tiger Brokers also issued a notice stating that, in accordance with the requirements of the China Securities Regulatory Commission for rectifying cross-border securities business, in order to complete the rectification work with high quality, the company will adjust its user client in the Chinese mainland from May 18, 2023. The Tiger Trade app will be removed from the Chinese application market.
Tiger Brokers stated that this adjustment will not affect existing customers’ normal use of the Tiger Trade app. For new users, Tiger Trade has stopped accepting account opening applications from Chinese mainland residents as of midnight on December 31, 2022. In the future, the company will continue to serve existing customers in compliance with Chinese regulatory requirements.
Tiger Brokers reiterates that this service adjustment only applies to users in the Chinese mainland. The company’s customers in other countries and regions around the world are not affected by downloading, using the app, and enjoying services.
Futu Holdings and Tiger Brokers have both been listed on the NASDAQ in the United States. As a result of this news, their pre-market stock prices for US stocks fell, with Futu Holdings falling more than 15% at one point and Tiger Brokers falling more than 10% at one point.
In recent years, Futu Holdings and Tiger Brokers have been repeatedly mentioned by Chinese regulatory authorities.
On December 30 of last year, the China Securities Regulatory Commission issued a notice requiring Futu Holdings and Tiger Brokers to rectify their actions. The commission stated that without approval from the regulatory authority, both companies engaged in cross-border securities business targeting Chinese investors. According to relevant laws and regulations such as the Securities Law, their behavior constituted illegal operation of securities business. Futu Holdings and Tiger Brokers were required to rectify their illegal activities and were prohibited from soliciting domestic investors or developing new customers within Chinese mainland or opening new accounts.