Futu Buys Back $160 Million in Shares After 37% Plunge on China Probe

Rachel Tang

·May 23 2026, 03:24

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Key Takeaways

Futu repurchased US$160 million of its American depositary shares (ADSs) as of May 23 under its existing buyback program.
The buyback follows a 37% premarket plunge in its share price after the China Securities Regulatory Commission (CSRC) announced an investigation.
The CSRC alleges illegal securities business in mainland China and plans to impose fines totaling $271 million on Futu and its CEO.

Futu Holdings Ltd. (FUTU) repurchased approximately US$160 million of its shares, a move to support its stock after it plunged 37 percent on news of a regulatory investigation in China.

"The repurchases were conducted under the Company’s share repurchase program previously announced on November 18, 2025," the company said in a statement. The buyback announcement came just a day after the company's shares sank in premarket trading.

The sell-off was triggered when the China Securities Regulatory Commission (CSRC) issued a notice of investigation against the online brokerage. The regulator alleges that Futu, along with other brokerages like Tiger Brokers and LongBridge Securities, conducted securities and futures business in mainland China without the required licenses. The proposed penalties against Futu total RMB1.85 billion ($271 million), with a personal fine of RMB1.25 million for CEO Li Hua.

The share repurchase program is an attempt to restore investor confidence after the regulatory notice wiped out a significant portion of the company's market value. The heavy trading volume, recorded at over 60 million shares against a 20-day average of 5 million, shows the intense market reaction to the news.

This regulatory action highlights the ongoing risks for Chinese companies listed abroad, particularly those operating in sensitive sectors like finance. For Futu, the buyback provides some support for the stock, but the investigation and potential fines remain a significant overhang. Investors will be watching for the company's first-quarter earnings report on May 28 for further details on the business impact.

This article is for informational purposes only and does not constitute investment advice.