Two online trading apps yanked from stores on Chinese mainland as regulators bring pressure

LTC Eugene Chu
..."Shares of online brokerages Futu Holdings and Up Fintech Holding were sharply lower on the Nasdaq Tuesday after they said they'll remove their apps from online stores on the Chinese mainland in response to "rectification requirements" from the Chinese Securities Regulatory Commission.

Many in the investing world regard the two firms as Chinese parallels to Robinhood Markets — popular trading platforms that people in China can use to make trades in markets beyond the country's borders, including the United States.

Tencent-backed Futu will remove its Futubull app from app stores in China by May 19, and Up Fintech said it will remove its app, Tiger International, by May 18.

Futu said it's removing the app in order to bring its operations into compliance with "regulatory principles regarding cross border operations." Up Fintech said the move was made "in order to complete the rectification work with satisfactory results."

Both companies said existing mainland Chinese customers will still be able to trade using the apps. Up Fintech said existing Chinese mainland clients will receive links for instructions on how to update and download the app going forward, while Futu gave a phone number for clients to call.

The two Chinese firms stopped accepting mainland Chinese clients at the end of last year after the CSRC started inquiries regarding their cross-border operations, including providing cross-border securities services for domestic investors."...