On May 27, Futu Holdings rose 5.95% overnight, trading at $114.2/share, with trading volume of $75,100. The stock continues to recover from the steep selloff triggered by China's securities regulator imposing approximately RMB 18.5 billion in fines on the company for unauthorized cross-border securities operations.

The rebound follows a report issued by S&P Global Ratings on May 26 stating that despite the regulatory crackdown on Futu's mainland business, the company's non-mainland operations are expected to sustain steady growth over the next two years. S&P noted that Futu's strong client base expansion in Hong Kong and overseas markets drove revenue growth exceeding 65% in 2025. Mainland clients as a share of total funded accounts have declined from over 30% in 2022 to approximately 13% as of Q1 2026, reflecting the company's deliberate diversification since 2023.

Notably, Goldman Sachs on May 26 downgraded Futu from Buy to Neutral and slashed its price target from $210.47 to $102.13, suggesting analysts remain divided on the stock's recovery trajectory following the regulatory penalty.

(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.)