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SEC - Chinese companies meeting audit requirements

I believe this question has been asked many times. what we investors would like to understand is, in the event, FUTU cannot comply to SEC audit requirements. what does FUTU management intend to do, there are essentially 3 outcomes
1) a share buyback at a “set price”, bringing company back to private.
2) a share transfer to ( best option in my opinion)
3) shares in Limbo, delisted and no listing in other locations (worst ever outcome, FUTU management better not come to this because investors will lose complete confident in the management team)
For share buyback, it’s gona be good for people we bought recently and very bad for bag holders whom are carrying the bag. example if FUTU can find a big enough institution investor who believes FUTU is undervalued, e.g tencents, they just need to put up around 1.5-2 B USD and they will be able to bring the company back to private? why 1.5 - 2 B? because Leaf li the CEO holds 36 pct share and Tencents hold 21 pct shares. they can easily bring is back to private buying back the remainder 42 pct float which is dirt cheap now. but this option may attract class action law suit from those with deep losses.

Which comes to the 2nd option, share transfer, best option for shareholders. if FUTU management can come out and say, they will list in Hongkong stock exchange and do a share transfer if they fail to meet audit requirements, the bleeding will stop instanteneously tomorrow, because shareholders know, they are safe even if shit hits the fan in US.
options 3 is the worst of the worst, management does not look for alternative place to list, and just let FUTU delist, don’t get me wrong, you still own equities of FUTU even if it is delisted, just that you cannot liquidate them, this will cause panic and sell off for people who needs money urgently. which is what I believe people are pricing in for on Thursday and Friday trading -15 pct and -8 pct respectively.
So, I humbly ask FUTU Management, please either do it by an official announcement or whichever means necessary to let your shareholders know that you have their best interest at heart and what will you do if you do not comply to the audit requirements, what will you do, or you can also say you will be able to engage a SEC recognized auditor to audit your accounts, either ways will really show us you are serious about shareholder protection, in return shareholders like myself will do our part to diamond hand your shares to the end. Please kindly clarify. I have absolute faith in FUTU management, please do not disappoint us.

@moomoo Lily@moo_Live@Mooers Radar@Popular on moomoo@Meta Moo@moomoo Breakfast@Investing with moomoo
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  • 搞经济 抄底 加仓 : Nice speech CommandoSalute

  • 肉脚小散兵 : At worst, it will not be delisted until the beginning of 2024 (SEC for 3 years)
    At this time, I think all the major shareholders of Chinese stocks are unable to answer this question.
    You can also think about all the Chinese stocks going back to Hong Kong to create a "Little Wall Street".
    1. How much will SEC be fined if delisting? LUCKN COFFEE DRC financial fraud case, paid 180 million US dollars; it is estimated that this rich way is still capable.
    two。 Where are you going after leaving the market? Fortune has a Hong Kong and Singapore license, and it is not difficult to change the runway to list in Hong Kong or Singapore. If you want to go public quickly, you can also make a backdoor listing. Companies like Fortune, which have made money and are growing, must be popular.
    I am more worried that Futuo will not grow up.. There are still many markets waiting to be developed in Asia.

  • Moomoo Lily : Regarding the recent announcement by the US Securities and Exchange Commission (SEC), the China Securities Regulatory Commission (CSRC) has responded and commented that this is a step taken by the US securities regulator to implement the Holding Foreign Companies Accountable Act (HFCAA)  and relevant rules. Furthermore, the CSRC and Ministry of Finance have been engaging with the US Public Company Accounting Oversight Board (PCAOB) and made positive progress recently.

    The overall operations of Futu are stable and robust as always, and we will continue to strictly abide by all applicable laws and regulations. Thank you again for your attention and support for Futu.

Trader for more than 10 years, loves near term swing trades
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