Futu

After earnings report, Futu was up 10% most of premarket, before giving up all gains upon market opening. Supports the hypothesis that American investors take Chinese ADRs very cautiously. not too different for Alibaba, I don't expect too much love from them.

Just now, both brokerage firms held conference calls with analysts and announced the penalty amounts. Overall, the two types of regulatory actions this time—fines and stock clearance—are relatively mild:

Fines: The pre-processing fine amounts for both institutions have been publicly announced, which are overall lower than market expectations (Futu: 1.85 billion yuan, Tiger Brokers: 410 million yuan).

Stock Clearance: This control measure is centered on the actual place of residence (physical jurisdiction). Overseas trading and fund transfers for existing mainland clients are unaffected; on the domestic platform, only selling and fund withdrawals are allowed.

Details of Stock Clearance: It does not require mainland clients to liquidate their stocks and close accounts within two years. Instead, after two years, domestic web servers will be shut down, prohibiting trading within the mainland. Clients located overseas can still deposit funds and trade normally.

Scope of Application: The new regulations apply to all overseas institutions, covering all overseas financial entities providing securities services to mainland clients. It is not only targeting Futu and Tiger Brokers but also includes overseas banks offering securities-related services.

Longbridge, being a non-listed company, should face relatively lighter penalties, and it's estimated that it won't be required to disclose them. In short, after two years, it's the crypto treatment—use a VPN.

$Futu(FUTU.US) $UP Fintech(TIGR.US)

Shares price of Futu, Tiger and Longbridge are affected by the fines and restrictions imposed. Are they still good investment choices?

Just support it once$Futu(FUTU.US)

$Futu(FUTU.US) closed the position and took profits.

$Futu(FUTU.US) Buy a little

FUTU and TIGR are crashing but you can profit from the panic. How do we trade this panic? Buying the shares may not be a good move but verticals look good to profit for sure.

Hold on $Futu(FUTU.US)despite experienced a significant drop after the quarter result release, as the result exceeded both revenue and profit estimates. However, it eventually turned positive.