BUZZ-China online broker ADRs dive on regulatory crackdown
Futu Holdings Limited FUTU | 0.00 | |
UP Fintech Holding Limited TIGR | 0.00 | |
iShares MSCI China ETF MCHI | 0.00 | |
KraneShares CSI China Internet ETF KWEB | 0.00 |
** U.S.-listed shares of Chinese online brokerages UP Fintech Holding TIGR.O and Futu Holdings FUTU.O slump more than 30% in premarket trading
** China launched a crackdown on cross-border activities that it accuses of illegally channel domestic money into overseas securities, futures and fund products
** The China Securities Regulatory Commission said it plans to impose penalties on online brokerages Tiger Brokers, a unit of UP Fintech, Futu and Longbridge for soliciting business in China without an onshore licence
** TIGR down 35% at $3.82, FUTU down 33.9% at $81.86
** The campaign targets overseas firms operating in China without approval and their domestic partners, setting a two-year grace period for them to wind down existing illegal operations
** KraneShares CSI China Internet ETF KEWB.N falls 4.5%, while iShares MSCI China ETF down MCHI.O 1.9%