What Happened to Futu Holdings Limited?
Futu Holdings Limited is a Hong Kong-headquartered fintech company offering digitized securities brokerage and wealth management services globally through its Futubull and Moomoo platforms. Despite facing significant regulatory challenges in mainland China, which led to the cessation of new mainland client registrations and app removal, Futu has aggressively expanded its international presence and diversified its services, including becoming the controlling shareholder of Ele Bank Limited in 2026. The company continues to report strong financial results and user growth in its international markets, even as it navigates ongoing regulatory scrutiny.
Quick Answer
Futu Holdings Limited, a prominent fintech company, has pivoted its growth strategy towards international markets like Singapore, Australia, Japan, Canada, and Malaysia, following regulatory crackdowns in mainland China that began in late 2022. While it ceased onboarding new mainland Chinese clients and removed its app from mainland stores in 2023, existing mainland clients can still trade. The company has demonstrated robust financial performance and user growth in its diversified markets, and in 2026, it became the controlling shareholder of Ele Bank Limited (formerly Airstar Bank). However, on May 22, 2026, news emerged of the China Securities Regulatory Commission (CSRC) planning to confiscate illegal gains and impose severe penalties for its past cross-border operations, causing a significant premarket stock slump.
📊Key Facts
📅Complete Timeline14 events
Futu Holdings Limited Founded
Futu Holdings Limited was founded in Hong Kong, laying the groundwork for its digital brokerage and wealth management platform.
Moomoo Platform Launched
Futu launched Moomoo, its international trading platform, specifically targeting the U.S. market.
IPO on Nasdaq
Futu Holdings Limited priced its initial public offering at US$12.00 per ADS, raising $90.0 million, and began trading on the NASDAQ Global Market under the ticker symbol 'FHL', later changed to 'FUTU'.
Initial Regulatory Concerns in China Emerge
Chinese officials began publicly questioning the legality of cross-border online brokerages like Futu operating in mainland China without proper licenses.
CSRC Orders Halt to New Mainland China Client Registrations
The China Securities Regulatory Commission (CSRC) officially ordered Futu and Tiger Brokers to cease accepting new customers from mainland China due to non-compliance with regulations.
Futubull App Removed from Mainland China App Stores
Futu removed its Futubull app from mainland China app stores, following a May 16 announcement, to comply with CSRC rectification requirements. Existing mainland clients could continue trading.
Investment in Airstar Bank
Futu announced a HKD440 million investment in Gravitation Fintech HK Limited, the parent company of Airstar Bank, a Hong Kong licensed virtual bank, becoming its second-largest beneficial owner.
Becomes Controlling Shareholder of Airstar Bank
Futu increased its investment in Airstar Bank by subscribing HK$500 million for newly issued shares, raising its indirect shareholding to 68.43% and making it the controlling shareholder.
Announces Strong Q4 and FY 2025 Financial Results
Futu reported its unaudited financial results for Q4 and full year 2025, with net profit more than doubling and full-year revenue exceeding $2.9 billion, driven by international growth.
Airstar Bank Renamed to Ele Bank Limited
Airstar Bank, where Futu holds a controlling stake, was officially renamed Ele Bank Limited.
Files Annual Report on Form 20-F for FY 2025
Futu Holdings Limited announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2025, with the SEC.
Moomoo Launches Agentic Investing with API Skills
Moomoo introduced 'Agentic Investing' with the launch of Moomoo API Skills, enhancing its platform's capabilities for users.
Announces Q1 2026 Earnings Release Date
Futu Holdings Limited announced it would report its financial results for the first quarter ended March 31, 2026, before U.S. markets open on May 28, 2026.
CSRC Plans Penalties for Illegal Cross-Border Operations
The China Securities Regulatory Commission (CSRC) announced plans to confiscate illegal gains and impose severe penalties on Futu and other brokers for allegedly engaging in illegal securities business operations within China, leading to a significant premarket stock slump for Futu.
🔍Deep Dive Analysis
Futu Holdings Limited, founded in Hong Kong in October 2012, emerged as a significant player in the digitized securities brokerage and wealth management sector. Backed by Tencent, the company rapidly grew, offering a comprehensive suite of investment services through its proprietary platforms, Futubull and Moomoo. It went public on Nasdaq on March 8, 2019, initially trading under the ticker FHL before changing to FUTU.
The company's growth, however, was significantly impacted by increasing regulatory scrutiny from mainland Chinese authorities. Concerns about the legality of offering offshore trading services to mainland clients without proper licenses began surfacing in late 2021. This culminated in late 2022 when the China Securities Regulatory Commission (CSRC) ordered Futu and its peer, Tiger Brokers, to cease accepting new mainland China customer registrations. The rationale behind this crackdown stemmed from China's efforts to control capital outflows and ensure financial stability, viewing such cross-border brokerage operations as non-compliant with its securities laws.
In a direct consequence of these regulatory pressures, Futu announced on May 16, 2023, its decision to remove the Futubull app from app stores in mainland China, effective May 19, 2023. While existing mainland clients were permitted to continue trading, the move effectively halted new client acquisition from the lucrative mainland market. This regulatory environment led to a series of securities class-action lawsuits alleging that Futu had failed to disclose its unlawful activities in China.
In response to these challenges, Futu intensified its international expansion strategy. Its Moomoo platform, launched in the U.S. in 2018, expanded to Singapore in 2021, Australia and Japan in 2022, and Malaysia and Canada in 2023. This geographical diversification has been a key driver of user and revenue growth, with the company reporting over 29 million global users by late 2025. Futu also diversified its business offerings, including a significant investment in Airstar Bank, a Hong Kong licensed virtual bank, in 2024. By September 2025, Futu increased its stake, becoming the controlling shareholder, and in April 2026, Airstar Bank was rebranded as Ele Bank Limited.
Financially, Futu has shown resilience. For the full year 2025, the company reported a net profit that more than doubled, with revenue climbing past $2.9 billion, driven by strong demand for U.S. technology stocks and growth in Asia. In March 2026, Futu announced its Q4 and FY 2025 financial results, beating expectations with total revenues increasing 45.3% year-over-year and net income up 80.2%. The company aims to acquire 800,000 net new funded accounts in 2026. As of May 2026, Futu's stock has experienced volatility, with a significant drop on May 22, 2026, following news that the CSRC plans to confiscate illegal gains and impose severe penalties on Futu and other brokers for their alleged illegal cross-border securities business operations in China. Despite this, analysts have noted Futu's strong fundamentals and growth potential in its international markets, with some considering the stock undervalued.
What If...?
Explore alternate histories. What if Futu Holdings Limited made different choices?