On May 27, Futu Holdings rose 6.78% in pre-market trading, trading at $111.9/share with trading volume of $18.22 million. The stock extended its multi-day rebound from last week's sharp sell-off triggered by a landmark regulatory penalty from the China Securities Regulatory Commission.

The continued recovery is supported by multiple Wall Street endorsements. S&P Global Ratings issued a report stating that despite the regulatory crackdown on Futu's mainland business, the company's non-mainland operations continue to grow strongly, and business flows are expected to remain stable over the next two years. S&P noted that mainland clients now account for only approximately 13% of total funded accounts, down from over 30% in 2022. Additionally, Morgan Stanley reaffirmed Futu as a top pick following the penalty, while the company disclosed it had completed approximately $160 million in share buybacks as of May 23.

S&P highlighted Futu's strong capital position, with a risk-adjusted capital ratio of 54.2% as of year-end, which would remain well above 15% even under a stress scenario assuming a 50% profit decline.

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