Response to the Latest Regulatory Guidelines on Cross-Border Securities, Futures, and Funds Services
The China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) issued industry-wide announcements respectively on 22 May 2026, to update their requirements and guidance for the industry regarding cross-border securities, futures and funds services for Chinese Mainland investors. Futu welcomes and commits to the regulatory guidelines of both regulatory authorities. These guidelines and regulations are standardized requirements for the entire industry, and we are fully committed to steadily advancing our compliance operations in strict accordance with regulatory requirements.
As a licensed financial service institution, Futu has always adhered to high compliance standards of regulatory compliance. Futu proactively suspended all account opening services for applicants with Mainland identity profiles at an earlier date. We enforce a strict zero-tolerance policy against fraudulent account openings, continuously deploying innovative technological solutions to combat identity fraud. Over the past two years, we have rejected tens of thousands of non-compliant account opening requests. Throughout the process, Futu has consistently maintained proactive communication with regulatory authorities and strictly followed the rectification requirements. By the end of the first quarter of 2026, the number of funded accounts from the mainland had decreased to 13% of the Group's total funded accounts. Concurrently, driven by Futu's effective globalization strategy, the number of funded accounts in overseas markets has continued to scale up significantly.
These updated regulatory guidelines explicitly apply to all overseas financial institutions. In response to the new regulatory requirements for servicing existing Mainland clients, we will strictly adhere to the latest regulatory guidelines. Furthermore, by referencing standard industry practices adopted by other established financial institutions, including major local and foreign brokerages and banks, we are fully committed to facilitating an orderly and proper transition for existing Mainland investors, thereby protecting client asset security and maintaining stable market operations. As the specific regulatory implementation rules are being finalized, we are currently dedicated to ensuring a detailed timeline and a concrete implementation plan. We will proactively announce the specific arrangements and notify the affected clients at the earliest opportunity once the regulatory details are officially issued.
Futu's business operations are conducted normally in the ordinary course. We remain steadfast in our commitment to strict regulatory compliance. Futu will continue to deliver premium services to our clients and steadily advance our business development within the legal and regulatory frameworks of the countries and regions where we operate.
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