Futu Plunges 36% Premarket as China Cracks Down on Cross-Border Trading

1 articles · Updated · CNBC · May 22

Futu’s U.S.-listed shares sank 36% in premarket trading after Beijing moved against illegal cross-border securities trading.
China said it will penalize brokerages accused of illegally moving money into foreign markets, a step Reuters reported as the trigger for the selloff in the Hong Kong-based platform.
The drop stood out in an otherwise upbeat premarket tape, with IMAX up 14%, Estee Lauder nearly 10% higher and Workday gaining more than 8%.
The move underscores rising regulatory risk for brokers tied to offshore investing channels as China tightens control over capital flows.

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