NVDA
NVIDIA
-- 121.670 TSLA
Tesla
-- 249.980 QBTS
D-Wave Quantum
-- 10.150 PLTR
Palantir
-- 86.240 RGTI
Rigetti Computing
-- 11.2200 
Correct analysis.
The China Securities Regulatory Commission has stated that it is for foreign exchange control, mainly to prevent mainland investors from using the Futubull platform to invest RMB funds in the US stock market, as this is a loophole for capital outflow. On the Futubull platform, you can convert funds from USD accounts to Hong Kong dollars and trade in the Hong Kong stock market. You can also convert funds from the A-share market to Hong Kong dollars and US dollars, open accounts in the Hong Kong stock/US stock market, and then transfer funds to the Hong Kong stock/US stock account for trading. The loophole is that funds in the Hong Kong stock/US stock market can be transferred to personal accounts in Hong Kong/US banks in the form of cash, completing the outflow of funds. This is not allowed by China's foreign exchange management system. As long as this loophole is closed, the China Securities Regulatory Commission cannot intervene. Because Futubull is registered in Hong Kong and has subsidiaries in Singapore, the United States, and Australia. The Chinese government has no power to interfere, replace, or fine overseas companies.
So the impact of the "rectification" on Futubull is not significant, only mainland customers cannot continue to grow. Overseas customers and transactions are not affected, except that they cannot convert Hong Kong dollars/US dollars into RMB on the Futubull platform for A-share trading or transfer RMB from A-shares to personal accounts within mainland China. The purpose of the China Securities Regulatory Commission is to block the free inflow/outflow of RMB and foreign capital on the Futubull platform.
So the impact is very small.
The market reaction is excessive because the company did not come out and explain it clearly, and they are also afraid of not being able to explain it thoroughly and being held on by US investors for endless legal disputes.
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Lovely_Moo : Do you think it will be possible for FUTU to close the loophole? (i.e. mainland investors are not allowed to transfer from FUTU to personal bank in US)
15块钱买花盆 : A must
intellectual Mink_31 15块钱买花盆 : The successor that went in last week has already been buried, and the one who went in today is buried tomorrow is there any good fruit to fight with the Party
intellectual Mink_31 : You're continuing to let Futu evade regulation, right?
ColdJoke : Please keep on discounting![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ixy The Cat : Finally, a clear analysis that is devoid of FUD. The US is at a political and economic war with China and the Chinese authorities want to prevent the fallout of the US weaponising its financial leverage.
廡所事事的人 : this story is not new, it was discussed back in 2021. Futu and Tiger already work closely with regulators to ensure compliance. This news is just to flood out weak holders.