Futu CEO Leaf Li Loses $1.7 Billion as China Tightens Cross-Border Trading Curbs
Updated
Updated · Bloomberg · May 25
Futu CEO Leaf Li Loses $1.7 Billion as China Tightens Cross-Border Trading Curbs
7 articles · Updated · Bloomberg · May 25
$1.7 billion was wiped from Leaf Li’s fortune in one day, cutting the Futu founder’s net worth to $4.7 billion after Beijing moved against cross-border stock trading.
The hit reflects China’s push to tighten control over capital outflows, with Li’s wealth heavily tied to his stake in US-listed Futu Holdings.
Li’s fortune is now less than half the $10.1 billion he held at the end of October, underscoring how sharply the crackdown has hit offshore-trading-linked wealth.
The broader clampdown is already driving Chinese investors out of overseas equities, with some Futu clients selling US stock positions as access channels come under pressure.
Amid Beijing's crackdown, can Hong Kong still serve as a secure gateway for investors' global capital?
As China and the US curb overseas investment, is the era of free global capital flows officially over?
Is China's crackdown on stock trading a panic move or a strategic play to control its economic destiny?
China Targets $32 Billion in Illegal Cross-Border Trading: 2026 Crackdown Redefines Hong Kong’s Financial Role
Overview
China has launched a sweeping crackdown on illegal cross-border securities, futures, and fund trading, building on years of increasing scrutiny since 2022. Led by the China Securities Regulatory Commission (CSRC), the campaign targets overseas institutions operating for mainland investors, especially those using questionable or forged documents to open accounts—most notably in Hong Kong. The Hong Kong Securities and Futures Commission is now enforcing stricter verification and closing suspicious accounts. These coordinated actions aim to restore order and stability in China’s capital markets by eliminating unauthorized trading channels and tightening control over capital flows.