Departments including the China Securities Regulatory Commission are working to improve the rules in line with the requirement that all financial activities should be fully regulated.
Shares of Futu Holdings, as well as Tiger Brokers, traded in the US, continued to fall in pre-market trading Friday, as the official securities media Securities Times said regulators are refining rules for them.
Citing people close to the regulators, the report said departments, including the China Securities Regulatory Commission, are working to improve the rules in line with the requirement that all financial activities should be fully regulated.
Regulators will regulate their operations in China in accordance with the law, strengthen supervision and enforcement and fully protect the legitimate rights and interests of investors, the report said.
Shares of Futu fell more than 5 percent at one point after the report, and Tiger Brokers fell about 6 percent at one point. Both are now down to less than 3 percent.
In an article published yesterday, People's Daily said that China's Personal Information Protection Law will come into effect on November 1, 2021, putting cross-border Internet brokerages that offer 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 personal information of mainland citizens leaving the country may become a new test for them as the Personal Information Protection Law clarifies the rules for providing personal information across borders, the article said.
Futu and Tiger Brokers fell 12.41 percent and 21.19 percent respectively yesterday.
Futu, Tiger Brokers shares plunge pre-market as Chinese official media flag user info security concerns