Global Debate: Why Is Xi Jinping Targeting a Brokerage Firm's App to Contain China's Capital Outflows?

The Chinese government has announced new regulations effective June 12, 2026, suspending all mainland Chinese investors' accounts from purchasing (opening positions) financial products and depositing funds. Investors will only be allowed to sell (close positions) and withdraw funds. The restrictions particularly target three major online brokers: Futu NiuNiu, Tiger Brokers, and Changjie Securities. Analysts interpret this as Beijing's latest measure to prevent capital flight.

The most watched player is Futu NiuNiu, the market leader. Founded in 2007 by Li Hua, a former Tencent employee, Futu Securities was officially established in Hong Kong in 2012 and listed on Nasdaq in 2019. Tencent, a major Chinese internet conglomerate, is a key strategic investor.

(Source: The Wall Street Journal)

Futu has grown rapidly in recent years, with over 30 million global users. In the first quarter of this year, its total trading volume reached a record high of approximately $530 billion. Most of its clients primarily invest in U.S. and Hong Kong stocks. Currently, about 17% of its clients hold mainland Chinese accounts, contributing one-fifth of the company's revenue. This article details Li Hua's influence and Futu's market impact. VVIP members can unlock the full report. Join the discussion on global economic trends and investment markets. Join the 'Hot Topic! Wall Street' LINE community to exchange insights with industry elites (password: WSJWSJ).