Futu Responds to Media Report

Rhea-AI Summary

Futu Holdings Limited (Nasdaq: FUTU) addressed media speculations regarding potential adverse PRC regulatory policies. The Company has not received any guidance suggesting material impacts on operations or financial conditions. Futu maintains compliance with regulations akin to other Hong Kong brokers, has reported false information circulating about it, and believes regulators prioritize investor protection. The firm continues to operate steadily, monitoring the regulatory landscape while serving clients through its digital brokerage platforms, Futubull and moomoo.

Positive

• Futu has not received any regulatory notice suggesting material adverse impacts on its operation.
• The Company continues to operate steadily and serve both existing and new clients.
• Futu adheres to the same regulatory compliance as other licensed brokers in Hong Kong.

Negative

• False information about Futu is circulating, potentially harming its reputation and stock performance.

HONG KONG, Dec. 17, 2021 (GLOBE NEWSWIRE) -- 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.

About Futu Holdings Limited

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitized brokerage and wealth management platform. The Company primarily serves the emerging affluent population, pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. The Company provides investing services through its proprietary digital platform, Futubull and moomoo, each a highly integrated application accessible through any mobile device, tablet or desktop. The Company's primary fee-generating services include trade execution and margin financing which allow its clients to trade securities, such as stocks, warrants, options, futures and exchange-traded funds, or ETFs, across different markets. Futu has also embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborate with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor inquiries, please contact:

Investor Relations
Futu Holdings Limited
ir@futuholdings.com

FAQ

What is the latest update from Futu Holdings Limited regarding regulatory impacts in 2021?

Futu has stated that it has not received any notices from PRC regulatory authorities that may adversely impact its operations.

How is Futu Holdings ensuring compliance with regulations?

Futu operates under the same rules as other licensed brokers in Hong Kong, maintaining active communication with PRC regulatory authorities.

What actions is Futu taking against misinformation in the media?

Futu is reporting false information spread on social media to regulators and reserves the right to take legal action.

Does Futu Holdings expect any significant changes in its business operations due to regulation?

Futu does not anticipate significant changes as it has not received any adverse regulatory guidance.