Benzinga | Dec 17, 2021 06:24AM EST

Futu Holdings Issues Response To Media Speculation Related To Potential People's Republic Of China Regulatory Policies

Futu Holdings Limited ("Futu" or the "Company") (NASDAQ:FUTU), a leading tech-driven online brokerage and wealth management platform, today responds to the media speculations regarding potential PRC regulatory policies that may have a material adverse impact on the Company's business operation. As a Nasdaq-listed company, Futu is committed to timely disclosing recent developments that may have a material adverse impact on the Company's business operation, including regulatory developments.

Futu always maintains active communication with different competent PRC regulatory authorities in its ordinary course of business. To date, the Company has not received (nor is it aware of) any notice, guidance or order from any PRC regulatory authorities which is expected to have a material adverse impact on its business operation or financial conditions. The Company has been operating steadily and will continue to serve existing and new clients.

In terms of serving the PRC clients, Futu has been abiding by the same rules and regulations and adopting the similar industry practices and business models as other brokers who hold the same type of licenses in Hong Kong. No further innovations or breakthroughs have been made by Futu with respect to the business model. There is no such "internet broker-dealer" category or definition under relevant legal framework and nowadays almost all broker-dealers are using internet (through App and/or website) to serve their clients. Futu will keep monitoring regulatory developments and continue to fully cooperate with relevant regulatory authorities.

During the recent period, the Company noticed that some individuals and institutions have been spreading false or fake information about Futu on social media with the purpose of profiting from short-selling. We have gathered relevant information and further reported to relevant regulators. We also reserve our right to take legal action.

We believe that the regulatory authorities in mainland China and Hong Kong have always attached great importance to protecting investors, maintaining a healthy and stable financial market, and prudently formulating policies and guiding the industry. We caution the media and the public to distinguish false and fake information and avoid being taken advantage of.