China's cross-border brokerage crackdown reached its climax on May 22, 2026, as the China Securities Regulatory Commission (CSRC) issued administrative penalty notices against Futu Holdings and Tiger Brokers (now Up Fintech). Futu faces a combined fine and disgorgement of 1.85 billion yuan ($271 million), while Tiger was ordered to forfeit 103.1 million yuan plus a fine of 308.1 million yuan, totaling about 410 million yuan.
Futu: $1.85B penalty targets illegal securities, fund and futures operations
Futu disclosed that CSRC and its Shenzhen bureau found the company's entities in mainland China and Hong Kong conducted cross-border securities, public fund sales and futures businesses without proper licenses, violating multiple Chinese laws. The proposed punishment includes confiscation of illegal gains and a fine totaling 1.85 billion yuan. Founder and CEO Li Hua was personally fined 1.25 million yuan. Futu noted the penalty remains subject to final approval.
Tiger: $410M fine plus CEO penalty
Beijing bureau of CSRC completed its investigation into Tiger's subsidiaries, levying confiscation of 103.1 million yuan in illegal proceeds and an additional 308.1 million yuan fine. Tiger's CEO Wu Tianhua received a warning and a personal fine of 1.25 million yuan.
Firms rush to calm markets: mainland assets now only ~10%
Both firms released statements highlighting that their mainland China retail client assets have been significantly reduced. Tiger said mainland assets accounted for just 10% of total client assets as of end-2025; Futu previously reported a similar ratio of about 13%. They claimed overseas operations remain normal. However, shares of both companies slumped more than 30% in pre-market trading amid the multi-billion-dollar cash drain and the complete shutdown of their mainland growth engine.