According to an article in the online edition of the People's Daily, the issue of personal information of mainland citizens leaving the country may become a new test for Futu and Tiger Brokers.
Shares of Futu Holdings and Tiger Brokers, brokerages that facilitate Chinese trading in US and Hong Kong stocks, plunged in pre-market trading as the online edition of official media outlet People's Daily flagged concerns about user information security.
As of press time, Futu was down 12.74 percent to $73.53, having fallen about 35 percent in the past three months. Tiger Broker was down 15.22 percent to $8.80, having fallen about 38 percent in the past three months.
China's Personal Information Protection Law, which will take effect on November 1, 2021, has put cross-border Internet brokerages offering US and Hong Kong stock trading services on the front burner, People's Daily said in an article published today.
Now that Futu and Tiger Brokers are both listed in the US, the issue of personal information of mainland citizens leaving the country may become a new test for them in the context of the Personal Information Protection Law, which clarifies the rules for providing personal information across borders, the article said.
Futu's latest financial results show that it has more than 15.5 million registered users and more than 1 million customers with assets, the article said.
Cross-border Internet brokerages, including Futu and Tiger Brokers, are at risk in terms of user information security as well as legalization and compliance, according to the article, which said the introduction of China's personal information protection law has raised higher compliance requirements for the cross-border transfer and use of domestic investor data.
On July 10 this year, a regulatory regulation issued by the Cyberspace Administration of China for public comment mentioned that operators with personal information of more than 1 million users going public abroad must file a cybersecurity review with the Cyber Security Review Office. The regulation will also be a new test for cross-border Internet brokerages going public abroad, according to the article.
Futu reports Q4 revenue of $153 million, up over 280% year on year