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 overreacted because the company did not come out to explain clearly, and also feared that the explanation would not be complete, being seized upon by American investors and facing ongoing legal disputes...