Futu says it will continue to actively cooperate with regulators in its efforts and ongoing efforts to protect personal information.
Futu Holdings, the brokerage that facilitates Chinese trading in US and Hong Kong stocks, has responded after official Chinese media raised concerns about the security of its users' information.
The company said in a statement Thursday that it has always actively cooperated with regulatory requirements. Futu contacted China's App Special Governance Task Force in July 2019 after the group made rectification comments and has completed all rectification work in accordance with regulatory requirements on August 2, 2019.
Futu has also been maintaining regular self-audit and self-inspection work, proactively maintaining communication with the regulatory authorities, strengthening professionalism in learning about the management requirements related to personal information security, and continuously improving its awareness and ability to protect personal information security, it said.
Futu has also hired an external professional security team to provide regular and continuous security testing reports, proactively optimize its systems and strengthen its risk prevention capabilities, the company said.
With regard to domestic legislation in the field of data compliance such as the Personal Information Protection Law, Futu has been organizing relevant professionals internally to follow up on legislative developments, organizing continuous research and study within the company, and arranging relevant teams to conduct self-examination and optimization, it said.
Since its inception, Futu has insisted that personal information protection and data security are top priorities, and has been strictly complying with and practicing relevant laws and regulations, and will continue to actively cooperate with regulators in the future and make efforts and continue to do a good job in protecting personal information, the statement said.
Earlier today, an article in the online edition of the official media People's Daily said that China's Personal Information Protection Law will come into effect on November 1, 2021, putting cross-border internet brokerage firms that provide trading services for US and Hong Kong stocks on the front burner.
Now that Futu and Tiger Brokers are both listed in the US, the issue of exporting mainland citizens' personal information may become a new test for them as the Personal Information Protection Law clarifies rules for providing personal information across borders, according to the article.
Futu fell 12.74 percent to $73.53 and Tiger Broker fell 15.22 percent to $8.80 in Thursday's pre-market trading of US stocks.