SHANGHAI (Reuters) -Online brokerages Futu Holdings Ltd and UP Fintech Holding Ltd will remove their apps in mainland China this week under the guidance of Chinese regulators, three sources told Reuters.
The move is part of corrective measures required by the China Securities Regulatory Commission (CSRC), which in December banned the two brokerages from soliciting new business from mainland investors.
The measure is negative for the brokerages’ branding, but will likely have limited financial impact, as mainland investors are already barred from opening new accounts via their apps, while existing Chinese clients are not affected.
It’s not clear if Hong Kong units of Chinese brokerages also need to remove their apps in China.
On December 30, the CSRC said that Tencent-backed Futu and UP Fintech – also known as “Tiger Brokers” – had conducted unlawful securities business and urged them to take corrective measures.
Futu and UP Fintech declined to comment. The CSRC didn’t respond to a Reuters request for comment.
(Reporting by Shanghai newsroom; Editing by Sharon Singleton)
