On July 7, Futu Holdings declined 5.31% in regular trading, trading at $92.74/share, with turnover of $104 million. The stock continues to face selling pressure amid compounding legal and regulatory headwinds.
On the news front, U.S. options market maker Susquehanna International Group (SIG) filed a lawsuit on June 29 in Manhattan federal court alleging approximately 100 individuals traded on insider knowledge of China's May 22 regulatory crackdown on cross-border brokerages. The defendants allegedly purchased put options on Futu and Tiger Brokers prior to the announcement, profiting over $100 million on approximately $12 million in options purchases — a return exceeding 900%. A federal judge has ordered the freezing of related accounts at multiple brokerages and issued subpoenas to identify account holders.
This legal action compounds existing pressures including the CSRC's proposed 1.85 billion RMB fine against Futu and the June 12 suspension of buy-side trading for mainland China users. Within the Investment Banking and Brokerage sector, peers also declined: Interactive Brokers down 2.93%, Robinhood down 2.88%, Goldman Sachs down 1.51%.
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