On May 22, Futu Holdings plunged 34.91% in regular trading, trading at $86.39/share, with trading volume of $2.158 billion. The sharp sell-off was triggered by a major regulatory crackdown from Chinese authorities.

China's Securities Regulatory Commission (CSRC) announced it has formally launched investigations and issued administrative penalty notices against Futu Securities International (Hong Kong), Tiger Brokers, and Changqiao Securities for conducting illegal cross-border securities business in mainland China. The CSRC stated these entities operated without proper licenses, violating Article 120 of the Securities Law, and plans to confiscate all illegal gains while imposing severe penalties.

Simultaneously, eight Chinese government departments including the CSRC, Ministry of Industry and Information Technology, and Cyberspace Administration jointly released a comprehensive plan to crack down on illegal cross-border securities, futures, and fund operations, setting a two-year intensive remediation period to fully clear illegal existing business. The plan prohibits offshore institutions from conducting any form of marketing, account opening, or trading services targeting mainland investors.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)