On May 22, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission issued separate announcements, providing updated industry-wide guidance regarding cross-border securities and futures fund business activities for mainland investors.

Futu Holdings Limited responded, stating it will actively embrace and align with the guidance direction from both regulatory bodies and will steadily advance related compliance work strictly in accordance with regulatory requirements. As a licensed financial services institution, Futu has consistently adhered to high compliance standards in its operations. The company had previously completely ceased opening new accounts for applicants with mainland Chinese identification and continues its efforts to combat fraudulent account openings, maintaining a zero-tolerance policy. It is continuously introducing new technological solutions to enhance the effectiveness of its anti-fraud measures. Over the past two years, the company has rejected tens of thousands of account applications that did not comply with the rules.

Futu stated that it has consistently engaged in proactive communication with regulators and followed their rectification requirements. By the end of the first quarter of 2026, the proportion of mainland Chinese clients with assets under the group's total client base with assets had decreased to 13%. Concurrently, under the group's effective internationalization strategy, the number of overseas clients with assets continues to rise.

This latest industry-wide regulatory rule is clearly directed at all overseas financial institutions. Regarding the new service requirements for existing mainland clients set by the regulators, Futu will strictly follow the latest regulatory guidance. It will also refer to the operational practices of other major domestic and foreign securities firms and banks within the industry to assist existing mainland investors in managing the transition in an orderly and appropriate manner, ensuring the safety of client assets and maintaining stable market order.

The company's business operations are currently normal. Futu will continue to uphold its philosophy of compliant operations, providing quality services to clients within the legal and regulatory frameworks of the countries and regions where it operates, and steadily advancing the development of all its business segments.