We all know what happened.
[https://www.reddit.com/r/wallstreetbets/comments/1tkeh1f/china\_securities\_regulatory\_commission\_will/](https://www.reddit.com/r/wallstreetbets/comments/1tkeh1f/china_securities_regulatory_commission_will/)
CSRC is fining $FUTU for allowing existing (accounts prior to 2023) mainland Chinese investors trade US stocks. Those profits are going to be gone and some fine.
But here's the thing. CSRC is not randomly punishing. $FUTU was warned back in 2022. And CSRC is NOT punishing $FUTU for all the other practice. It's just for the fact the money can LEAVE China. China does NOT want Chinese people to invest in US stocks with Chinese money. It's all logical.
Well here's the thing. $FUTU by fundamentals is an amazing company.
|Financials|Futu|Robinhood|
|:-|:-|:-|
|PE Ratio|12.03|36.72|
|Market Cap|12.73 B|67.17 B|
|Dividends|(One time Dividend this Year) 2.87%|None|
|Growth Rate 2025|\+76.14%|\+51.6%|
|Net Income Growth 2025|\+108%|\+115%|
|Net Margin 2025|49.5%|40%|
|Trading Volume Growth In Equity 2025 (About)|\+89.4%|\+68%|
$FUTU is the go to degen app for well regarded "investors" in Hong Kong, Singapore, Malaysia, etc. And basically those who are ethnically Chinese.
Here's the thing. $FUTU revenue growth is outside mainland China as $FUTU was banned back in 2023 in mainland China.
All that growth and degen work is basically from outside China. That money and growth is real.
Remember UNH? That thing is already recovering slowly over time from the over reaction.
https://preview.redd.it/tqm20r5fwp2h1.png?width=1776&format=png&auto=webp&s=ab53baeb647fcc52ccfb9bd6cea3b79e0ce56696
Well, what am I getting at? The market is over reacting. This is just something that CSRC made clear to $FUTU back in 2022 with a warning but $FUTU ignored. CSRC is not going after $FUTU to remove the company. It's been common sense even to westerners that China does NOT want mainland Chinese to invest in US stocks. It's completely rational take.
But CHYNA! Well, you guys remember the fraud of Luckin Coffee? That was an actual financial fraud. $FUTU isn't.
Luckin Coffee turned out to be a BUY the dip of a lifetime.
https://preview.redd.it/mfdfbsofwp2h1.png?width=1988&format=png&auto=webp&s=ff1e99aee5c37b6edc8204b26a7957abdac60a10
Here, we have a brokerage firm with insane growth and insane financial metrics. Even does one time dividends from time to time. And the growth is not even relevant to mainland China because this app has not accepted any new mainland Chinese investor since 2023.
Clearly over reaction and buy the dip of a lifetime.
Also, why the heck are all Chinese tech stocks affected by this incident? This has absolutely nothing to do with companies like Alibaba. Ant Financial isn't even in this case as Ant Financial actually followed the rules and offboarded back in 2023 the mainland Chinese investing on US stocks.
Also, if anything, this whole thing is bullish. CSRC is following known clear rules. Gives warning back in 2022 and gives 4 years (basically grace period) for companies to adapt. Ignore? Then take those profits. Nothing else. Firms like Ant Financial which abided by the rules don't get punished at all. China just does not want money to LEAVE China for US stocks. This makes perfect sense to me. China wants to encourage Chinese people to invest only in Chinese stocks. Why wouldn't it?
People tend to just sell everything out of irrationality when it comes to anything on China. Use your brain. This one is a 1 time completely fair decision given the laws in China. Let alone all that real growth and revenue doesn't even come from mainland China.
https://preview.redd.it/zuyhacm0xp2h1.png?width=2048&format=png&auto=webp&s=9d8163e4dc119c8e4a0f028d6b09100679ddc30a