Further rectification of cross-border securities business Futu Tiger has announced that it is going to remove domestic APP

Tech 2023-05-17 08:41:53 Source: Network

Securities Times reporter Wang RuiOn the evening of May 16th, the US stock prices of two leading technology securities firms, Futu Securities and Tiger Securities, both fell by more than 10% and 6%, respectively, due to the news that mainland customers will be delisting their apps.Subsequently, Futu Securities and Tiger Securities successively announced that they plan to remove their respective Hong Kong US stock trading apps from domestic app stores starting this week

Securities Times reporter Wang Rui

On the evening of May 16th, the US stock prices of two leading technology securities firms, Futu Securities and Tiger Securities, both fell by more than 10% and 6%, respectively, due to the news that mainland customers will be delisting their apps.

Subsequently, Futu Securities and Tiger Securities successively announced that they plan to remove their respective Hong Kong US stock trading apps from domestic app stores starting this week. The two securities firms also unanimously emphasized that the relevant business and services of existing domestic customers will not be affected.

Domestic APP encountered delisting

According to the announcement, Futu Securities will remove the Futu Niuniu APP from online application stores in China starting from May 19, 2023. Futu Securities said that the move was in response to the industry rectification requirements of the CSRC to regulate cross-border securities business, so as to promote the business to fully comply with the domestic regulatory spirit.

However, following the previous regulatory approach of "effectively curbing incremental growth and orderly resolving inventory", Futu Securities emphasizes that currently, the company's existing domestic customers can still trade through the Futu Niuniu APP, and related services and businesses are not affected in any way; Hong Kong and all overseas users are not affected in downloading and using the Futu Niuniu app.

Futu will continue to fully serve all existing domestic customers and provide high-quality products, services, and customer experiences for all existing domestic customers, "said Futu Securities.

Tiger Securities stated that starting from May 18, 2023, it will adjust the way domestic users update their clients and remove its app "Tiger International" from the domestic application market. This adjustment will not affect the normal use of the APP by existing customers, and the company will continue to provide high-quality services to existing customers and ensure the safety of customer assets

Tiger Securities also issued specific graphic and textual guidelines on the specific arrangements for updating and downloading apps for existing customers, and stated that this update adjustment is only limited to domestic users in China, and downloading updates by overseas users will not be affected.

As soon as the news was released, the Hong Kong US stock brokerage industry once again sparked heated discussions. What else can we do if all the apps are taken off the shelves? "Some analysts believe that since the previous suspension of adding mainland customer accounts and the current removal of domestic application store apps, it seems that the regulatory issues of cross-border securities trading have come to an end, and there should be no further adjustment requirements in the future.

However, some industry insiders have expressed concerns that after Futu Securities and Tiger Securities, will other Chinese securities associations be affected? After all, several Chinese securities firms have suspended the opening of Hong Kong US stock accounts for mainland customers, and even Hong Kong securities firms have announced a halt to serving all mainland customers. At present, it is not clear. We hope to have some clear points confirmed in the future, "the person said.

Two securities firms actively switch to overseas markets

On March 29th, Tiger International released unaudited financial data for the fourth quarter and full year ended December 31, 2022, showing that the company achieved revenue of nearly $230 million in 2022, with a net profit of $12.68 million attributable to its parent company, Non GAAP, maintaining profitability for three consecutive years.

At that time, Wu Tianhua, the founder and CEO of Tiger, said, In the fourth quarter of last year, due to the impact of the Federal Reserve's interest rate hike, Tiger's interest related income increased both year-on-year and month on month, with revenue continuing to climb month on month, and net profit significantly increasing year-on-year. Looking back on the entire year, we adhered to technology investment, cost reduction and efficiency increase, and liquidation related costs halved year-on-year. Non GAAP's net profit has been profitable for three consecutive years. Despite facing severe market conditions, the company has maintained good performance

Data shows that in the fourth quarter of 2022, the global number of Tiger account opening customers increased by 38000, breaking the 2 million mark; A total of 27000 to 782000 new clients were added in the quarter, with a total of 108000 new clients added throughout the year, exceeding the target of 100000 new clients added within the year.

Tiger's customer growth is closely related to its internationalization strategy. Last December, Tiger officially launched its official announcement in Hong Kong, providing a one-stop trading service for local investors to trade financial products in major global markets. In Singapore, which had an earlier layout, Tiger stated that about one out of every three permanent adult residents of Singapore had used TigerTrade. In the fourth quarter of 2022, the average net income of new customers was nearly $120 million, a consecutive increase for three quarters.

On March 28th earlier, Futu Holdings released financial reports showing that the company's revenue and net profit in 2022 increased by about 7% year-on-year, reaching $976 million and $401 million, respectively. Despite the continued downturn in global capital markets last year, it appeared resilient.

As early as 2018, the overseas trading platform Moomoo of Futu was born in the United States, and then entered the Singapore and Australian markets in March 2021 and March 2022, respectively. Thanks to this, in the past few quarters, Futu's new customers have mainly come from the Hong Kong region and overseas markets.

Data shows that as of the end of 2022, the number of registered users of Futu Niuniu and MoomooAPP reached 19.58 million, a year-on-year increase of 12.7%; The number of customers who opened accounts at Futu reached 3.23 million, a year-on-year increase of 17.5%; The total number of clients with assets was 1.487 million, a year-on-year increase of 19.5%. In the fourth quarter, there was a net increase of 42000 asset clients, with client assets reaching 53.5 billion US dollars (approximately HKD 417.5 billion) at the end of the period.

On the evening of March 28th, Li Hua, the founder of Futu Holdings, responded to investors' questions and stated that Futu had launched its internationalization strategy earlier. The new customers in the past few quarters mainly came from Hong Kong and overseas regions. "We will continue to rectify according to regulatory requirements and further promote internationalization progress

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