Webull sinks after report says US House panel flagged China ties
BULL•Webull shares fell 19% to $5.89 after a report said a US House committee found the trading platform was tied to China’s government in “structural ways.” Webull disputed the findings, while analysts said the report could weigh on valuation and create regulatory uncertainty.
1. Committee findings reported
Webull shares dropped to a near four-month low after a report said the bipartisan House Select Committee on China had found a “profound gap” between the company’s public marketing and actual control. Reuters could not independently verify the report.
2. Webull disputes conclusions
A Webull spokesperson said the company cooperated with the committee but had not heard from it for more than 20 months, calling the report’s conclusions inaccurate and unsupported. The spokesperson said Webull stores US customer data in the United States.
3. Analysts flag uncertainty
Scotiabank analysts said the near-term question is whether executive agencies or financial regulators initiate or broaden reviews, adding that the report would weigh on valuation rather than financial results. Siebert Financial analyst Brian Vieten suspended his buy rating and price target, citing uncertainty about potential regulatory and operational implications.
