Fines issued! China imposes heavy fines of 1.85 billion RMB on Futu and 410 million RMB on Tiger Brokers, with both CEOs facing disciplinary action.

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The "fines" for China-concept cross-border brokerages have officially landed! The China Securities Regulatory Commission (CSRC) today (22nd) announced the specific penalty amounts against Futu Holdings and Tiger Brokers. Futu was heavily fined up to RMB 1.85 billion (approximately USD 271 million), while Tiger Brokers had a combined confiscation and fine totaling approximately RMB 410 million. The founders of both companies, Li Hua and Wu Tianhua, were also jointly penalized, each fined RMB 1.25 million. Facing the massive fines and panic from U.S. pre-market plunges exceeding 30%, both companies swiftly issued statements to reassure the market, emphasizing that mainland client assets have dropped to around 10%, with overseas businesses unaffected. (Background: In China's crackdown on Futu and Tiger, is the "biggest winner" actually Ondo Finance? RWA becomes a capital escape route, with tokens jumping 17% in a single day) (Background supplement: Futu and Tiger plunge 40% pre-market! China imposes "nuclear-level" regulation: mainland clients can only sell, not buy, effective immediately) The China-concept brokerage regulatory storm that shocked Wall Street has finally revealed its most lethal "sky-high fine" trump card. After the China Securities Regulatory Commission (CSRC) announced a severe crackdown on illegal cross-border business operations, Futu Holdings (FUTU) and Tiger Brokers (TIGR, now renamed UP Fintech) successively issued official announcements today (May 22, 2026), confirming receipt of advance notification of administrative penalties from the regulatory authorities. The massive fine figures definitively mark the end of the golden era during which these two brokerages relied on the Chinese mainland market. According to Futu Holdings' announcement, the company has received investigation notices from the CSRC and its Shenzhen branch. Officials stated that certain Futu entities in mainland China and Hong Kong, without obtaining required licenses or approvals, illegally conducted securities, public fund sales, and futures businesses within mainland China, seriously violating the Securities Law, the Securities Investment Fund Law, and the Futures and Derivatives Law. For this reason, the CSRC intends to order Futu to immediately correct and cease such violations, while imposing devastating economic sanctions: - Heavy corporate fines: Intends to confiscate illegal gains and impose substantial fines, with a total amount reaching RMB 1.85 billion (approximately USD 271 million). - Executive crackdown: The CSRC intends to impose a personal fine of RMB 1.25 million (approximately USD 183,000) on founder and CEO Li Hua. Futu stated that the currently proposed fines are still subject to further administrative procedures and the CSRC's final decision. Another cross-border brokerage giant, Tiger Brokers (UP Fintech), faces the same severe fate. According to the announcement, the Beijing Regulatory Bureau has completed its investigation of its subsidiary, finding that it conducted unlicensed cross-border securities, fund, and futures-related illegal activities. The Beijing Regulatory Bureau issued clear penalty decisions: - Heavy corporate fines: Confiscation of approximately RMB 103.1 million in illegal gains, plus an additional administrative fine of approximately RMB 308.1 million (together totaling approximately RMB 410 million). - Executive crackdown: Director, CEO, and actual controller Mr. Wu Tianhua received an official warning and was likewise fined RMB 1.25 million. Facing the sky-high fines and panic selling that sent U.S. pre-market shares of both companies plunging over 30% to 40%, both companies attempted today to use data to soothe market sentiment and downplay the impact of China market shrinkage on overall operations. Tiger Brokers emphasized that the company has always prioritized compliance, all current business operations remain normal, and it will actively cooperate with regulators. Data shows that as of the end of 2025, retail client assets in mainland China in the company's consolidated statements accounted for only approximately 10% of the company's total client assets. Futu also stated that the company had long since stopped adding new accounts for mainland applicants and strictly rejected tens of thousands of non-compliant account applications; according to previous reports, Futu's mainland client asset proportion has also dropped to a relatively low level of approximately 13%. Although both companies actively demonstrated their determination to "cut losses to survive" and shift toward overseas market expansion, facing cash bleeding of hundreds of millions of dollars and the complete shutdown of the massive mainland China growth engine, capital markets may struggle to restore confidence in their valuations in the short term.

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