Futu Founder's Net Worth Plummets by Over $1.7 Billion Amid China's Cross-Border Investment Crackdown

Central News Agency, Hong Kong, May 25. According to Bloomberg, following the Chinese government's crackdown on cross-border stock trading to prevent capital flight, the personal wealth of Li Hua, founder of Chinese online brokerage Futu Holdings, shrank by more than a quarter, with $1.7 billion (approximately NT$53.4 billion) evaporating in a single day. According to the Bloomberg Billionaires Index, Li Hua's wealth fell by $1.7 billion to $4.7 billion as of the 22nd. This is less than half of his $10.1 billion wealth as of the end of October last year. Most of his net worth comes from his stake in the US-listed Futu Holdings. The China Securities Regulatory Commission (CSRC) stated on the 22nd that brokerages such as Futu, Tiger Brokers, and Longbridge have been conducting securities business in mainland China without permission and plans to impose fines on them. Futu subsequently noted that the CSRC intends to fine the company approximately 1.85 billion yuan. As Chinese citizens began to invest in the stock market, Li Hua became one of many brokerage founders to accumulate vast wealth. However, Futu's stock price plunged 28% on the 22nd, marking its largest single-day drop in over three years.