Futu Holdings Shares Plunge 27.5% to $89.76 After CSRC Probe and Neutral Rating
FUTU•Goldman Sachs downgraded Futu Holdings to Neutral with a $102.13 price target after the China Securities Regulatory Commission launched an investigation into its unlicensed securities and futures operations in mainland China. Shares dropped 27.53%, falling $34.10 to $89.76, while Schall Law Firm opened a disclosure probe into potential misstatements.
1. Regulatory Investigation
The China Securities Regulatory Commission has opened an investigation into Futu Holdings for conducting securities and futures business in mainland China without the required licenses, raising concerns about the company’s compliance with domestic financial regulations.
2. Analyst Downgrade and Price Target
Goldman Sachs downgraded Futu Holdings from Buy to Neutral and set a new price target of $102.13, reflecting increased caution over regulatory and operational risks in the Chinese market.
3. Market Reaction and Legal Follow-up
Shares fell from $123.86 to $89.76, a 27.53% decline on trading volume of 61.3 million shares, and the Schall Law Firm has launched a probe into potential disclosure violations related to the regulatory investigation.
