Buy back share
Will there be a enticing possibility that it will get delist. If the share price is low causing an attractive low market cap, I would advise futu and tiger management to execute leverage buyout (taking a loan or angel investor) and take the company private and ipo in the future or in other market like China or Hk which fetch higher valuation. This would reap enormous profit for the company and regain full helm of the company without answerable to anyone or under scrutiny in the meantime.
The profit can be inject back into the company to pay down loan /liability and use for growth initiative, giving the company a solid financial standing than ever to weather any upcoming storm.
At the same time they can avoid the stress of share price plunging, especially now in the confusion situation, will trading revenue plunge given China investor is uncertain what awaits ahead.
As lesser China company ipo in USA, will it reduce the fees income too for the company assuming if they do earn income from this segment
Retail investor would be wipe out and surrender their share at whatever residual value it is trade at but undeniably this is best outcome for the company survival and make a comeback in future when the coast is clear.
Example is JOYY
What's your opinion of this? Share your thoughts.
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70018353 : What do you suggest?
QMengColdJoke : won’t help. Check out $Yalla (YALA.US)$. Instead it hurts cash reserve. Best way is giving face to CPC. stay in low profile, let earnings report tells. After some time, we will be fine.
ColoradoInvestor : Where are you hearing delisting?
Upncoming1841 : CCP appears to have a beef with any Chinese company that lists in the US, fearing that SEC will access the data and particulars of China citizens. Futu might be subjected to less scrutiny if it lists in HK.
102169479 OP ColoradoInvestor : I am assuming if this scenario play out. It did happen to other company
102169479 OP QMengColdJoke : If they take out a loan, it can last many year while paying off monthly installment.
Should angel investor like other Chinese company or bank participate in this exercise, then cash consumption would be much lesser
As long the business is ongoing, they will hsvenjo problem to raise cash by issuing bond or loan after taking private
102169479 OP Upncoming1841 : I couldn't agree more. Therefore by delisting in usa, not only it appease to the cpc thereby reducing the regulatory risk, but also having colossal sum of fund by listing in Hk with respectful valuation.
102169479 OP 70018353 : Well. It's your call.