Futu Holdings Ltd. has received a BBB- investment-grade rating from Standard & Poor's, becoming the first internet brokerage in the Asia-Pacific region to receive an international rating.

On June 3, 2021, Futu Holdings Ltd. (Nasdaq:FUTU), a leading digital financial technology company in China, announced that it has been awarded a Group Credit Profile (GCP) rating of 'bbb' and a long-term investment-grade issuer credit rating of 'BBB-' by Standard & Poor's (S&P), with a 'Stable' outlook. S&P expects Futu to continue maintaining its leading position in the internet brokerage industry in the future business growth process, while maintaining strong capital and sufficient risk control capabilities.

In the publicly available rating data of Standard & Poor's, Futu is the first internet brokerage in the Asia-Pacific region to receive international ratings, the first independent brokerage in Hong Kong to receive an investment-grade rating from Standard & Poor's. Its group's overall credit rating of "bbb" is also the highest level given by Standard & Poor's to brokerage firms in Greater China.

Standard & Poor's is one of the three most authoritative credit rating agencies internationally recognized. As a recognized standard in the financial investment sector, Standard & Poor's public rating system is divided into investment grade and non-investment grade, with credit ratings ranging from high to low: investment grade AAA, AA, A, BBB; non-investment grade BB, B, CCC, CC, C, and D. An investment-grade rating of BBB- or higher implies high company credibility, low default risk, and generally requires strong company performance to obtain such a rating.

In the publicly available rating by Standard & Poor's, domestically companies receiving investment grade ratings are not common. Futu, as the first independent brokerage in Hong Kong to receive an investment-grade rating of "BBB-" from Standard & Poor's, its rating result is only one sub-level lower than the global renowned internet brokerage Interactive Brokers (Interactive Brokers' Standard & Poor's rating is "BBB").

Standard & Poor's believes that Futu, as an internet-oriented brokerage focusing on retail trade, holds a leading position in the Hong Kong market and will further leverage its brand effect to expand into overseas markets such as the USA and Singapore. While vigorously developing brokerage business, Futu is also actively expanding into wealth management, corporate services, and other businesses. Its sources of revenue, operating regions, product types, and customer base are becoming increasingly diversified. Futu's ample risk-adjusting capital significantly contributes to its rating result. Standard & Poor's expects Futu to continue maintaining sufficient capital to support its rapid business growth. A large mortgage pool and prudent credit policies enable Futu to meet its fund requirements, with future emphasis on diversifying funding sources. Furthermore, Futu's development is also benefiting from support provided by its second-largest shareholder, Tencent (based on voting rights), in business cooperation and daily operations.

According to the latest unaudited financial report for the first quarter of 2021, Futu's performance is quite remarkable. Total revenue in the first quarter reached 0.28 billion USD (approximately 2.2 billion HKD), a 349% year-on-year growth, achieving triple-digit year-on-year growth for five consecutive quarters. As of the end of the first quarter, the global registered user count reached 14.24 million, a 70% year-on-year increase; active client count reached 1.96 million, a 140% year-on-year increase; paying client count reached 0.79 million, a 231% year-on-year increase. Total trading volume in the first quarter reached 289 billion USD (approximately 2.2 trillion HKD), a 278% year-on-year increase.

In the first quarter, Futu made breakthrough progress in its international business, with over 70% net increase in paying clients from China, Hong Kong, Singapore, and other overseas markets. Since officially entering Singapore for operations on March 8th, Futu has rapidly become a recognized tech brokerage platform among local investors. In less than three months, Futu's registered user count in Singapore has exceeded 0.22 million, and the paying client count has surpassed 0.1 million.

In terms of corporate services, Futu has provided IPO distribution and IR services to 152 companies, with ESOP option management serving a cumulative customer base of 200 companies. Clients cover leading enterprises in various industries such as medical health, consumer retail, autos, logistics, and TMT. As of the first quarter, Futu's wealth management subsidiary, Elephas Wealth Management, has over 40 global renowned fund company partners, with 4 new additions in Q1. The end-of-period asset management scale reached 13.1 billion HKD (approximately 1.69 billion USD), a 108% year-on-year increase.

Leaf Li, founder, chairman, and CEO of Futu Holdings Ltd, stated: "Futu being the first independent brokerage in Hong Kong to receive an investment-grade rating from Standard & Poor's, fully demonstrates the international mainstream rating agencies represented by Standard & Poor's recognition of Futu's operational development situation. This lays a solid foundation for Futu to enhance its bargaining power in international capital markets and reduce financing costs. Always relying on autonomous licensing and cutting-edge research capabilities, Futu has established a strict and efficient risk control system, and through an all-online investment platform, provides global investors with safer, ultimate product experiences and services, driving Futu's continuous advancement. In the future, Futu will continue to expand its customer base, diversify product lines, enhance technological service capabilities, steadily advance its internationalization strategy while deepening its presence in the Hong Kong market, aiming to become a globally influential financial services platform."