On June 12, Futu Holdings rose 5.27% in regular trading, trading at $99.25/share, with turnover of $54.64 million. The rebound comes as the Hong Kong Securities and Futures Commission issued a clarification that Hong Kong-licensed companies may continue to serve existing mainland Chinese clients, provided such services are not delivered within mainland China and comply with all applicable regulatory requirements.

The clarification follows a major regulatory crackdown announced on May 22, when China's CSRC jointly with seven other departments issued a comprehensive enforcement plan targeting illegal cross-border securities activities. Futu, Tiger Securities, and Changqiao were subject to administrative penalties including confiscation of illegal gains. A two-year transition period was established, during which existing mainland investors are restricted to sell-only operations and fund withdrawals, with new purchases and fund transfers prohibited. As of June 12, Futu officially closed buy-side transactions for mainland China users.

Despite the enforcement actions, the Hong Kong SFC's latest response provides partial relief, affirming that Futu's Hong Kong-licensed entity can still maintain its existing mainland client base under compliant conditions, mitigating fears of a complete business shutdown.

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