On May 26, Futu Holdings rose 15.2% in regular trading, trading at $103.31/share with trading volume of $591 million, marking a significant rebound after the stock plunged approximately 27.5% on May 22 following a landmark regulatory penalty.

The recovery comes as the market reassesses the impact of the China Securities Regulatory Commission's proposed 1.85 billion RMB fine against Futu for conducting unauthorized securities, public fund sales, and futures businesses in mainland China without required licenses. CEO Li Hua also faces a personal penalty of 1.25 million RMB. Eight Chinese government agencies jointly issued a comprehensive rectification plan requiring a two-year transition period during which mainland clients may only sell existing positions and withdraw funds.

Notably, Futu disclosed that mainland clients with assets now account for only 13% of its total client base as of Q1, down significantly from prior levels, while its overseas funded accounts continue to grow steadily. The company stated it will fully cooperate with regulators while exercising its legal rights to protect shareholder interests.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)