US Stock Market Move | China Securities Regulatory Commission seriously investigated and dealt with illegal cross-border business cases involving institutions such as Tiger Global Management LLC. Futu Holdings Ltd. Sponsored ADR Class A (FUTU.US) and UP Fintech Holding Ltd. Sponsored ADR Class A (TIGR.US) opened significantly lower by over 30%.

On Friday, Futu Holdings Ltd. Sponsored ADR Class A (FUTU.US) and UP Fintech Holding Ltd. Sponsored ADR Class A (TIGR.US) opened significantly lower by over 30%. In recent news, the China Securities Regulatory Commission (CSRC) has initiated investigations against Tiger Brokers (NZ) Limited (referred to as Tiger), Futu Securities International (Hong Kong) Limited (referred to as Futu), and Changqiao Securities (Hong Kong) Limited (referred to as Changqiao) and other related entities for illegal securities operations in China. The CSRC intends to confiscate all illegal gains of Tiger, Futu, and Changqiao and impose severe penalties. Futu Holdings Ltd. Sponsored ADR Class A announced today that the company has received an investigation notice and a pre-notification of administrative fines from the CSRC and its Shenzhen office. The CSRC pointed out that certain Futu entities (related companies) in mainland China and Hong Kong were conducting securities business, public fund sales, and futures business in mainland China without the necessary licenses or approvals, violating the Securities Law, Securities Investment Fund Law, and the Futures and Derivatives Law of the People's Republic of China. The CSRC intends to order the related companies to correct or cease such behavior, confiscate illegal gains and impose fines, with a total fine amount of approximately 1.85 billion RMB (approximately 271 million USD). In addition, the CSRC intends to impose a personal fine of 1.25 million RMB (approximately 183,575 USD) on the company's founder and CEO, Mr. Li Hua. Futu Holdings Ltd. Sponsored ADR Class A stated that the proposed fines are still pending further procedures and the final decision of the CSRC.