'China's Robinhood' brokerages are next targets in tech crackdown

Shares in Futu Holdings and Up Fintech Holding plunge after Beijing critique

20211104N Futu

An ad for Futu Holdings covers a tram station in Hong Kong. Platforms like Futu have operated in a legal gray area, giving mainland investors a way to evade capital restrictions on offshore stocks. © AP

TAKESHI KIHARA and STELLA WONG, Nikkei staff writers

HONG KONG -- China's crackdown on the tech industry has reached the fast-growing online securities sector, with shares in Futu Holdings and Up Fintech Holding both suffering a major blow in the U.S. following abrupt criticism from Chinese authorities.

Amid regulatory uncertainties, mainland investors are having difficulties in remitting money in their offshore securities trading accounts back to their mainland bank accounts.

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