Futu Added to the Provisional List Identified Under the HFCAA
Futu Holdings Limited (the "Company") is a global digitized fintech company and its American depositary shares are listed on the Nasdaq stock market. The Company has been paying close attention to the relevant requirements under the U.S. Holding Foreign Companies Accountable Act (the "HFCAA"), evaluating their potential impact on the Company, and actively exploring approaches to maintain its listing status.
On March 30, 2022, the U.S. Securities and Exchange Commission (the "SEC") provisionally named the Company as a Commission-Identified Issuer. The identification was based on the SEC's determination that the audit report included in the Company's annual report on Form 20-F for the fiscal year ended December 31, 2021 was issued by a registered public accounting firm that has not been subject to inspection by the Public Company Accounting Oversight Board (the "PCAOB"). The Company's American depositary shares will not be immediately delisted as a result of the identification. According to the HFCAA, listed companies will be forced to delist only if their audit reports cannot be inspected completely by the PCAOB for three consecutive years. Currently, Futu is added to the provisional list for the first year. The Company will make its best effort to ensure compliance and actively explore approaches to maintain the company's listing status.
Media outlets recently reported that relevant Chinese regulatory authorities have been in communication with the PCAOB and made some positive progress. Moreover, the Financial Stability and Development Committee under China's State Council indicated that the Chinese government will continue to support all kinds of eligible enterprises to list overseas.
Futu's operations continue to be 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.
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Futu is an advanced tech company transforming the investing experience by offering a fully digitized brokerage and wealth management platform.
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Jeremyx : May I know what is the solution? Will FUTU decide to use another accounting firm? What will be your next action?
curtaincall Jeremyx: The fact is, changing accounting firm won't work as the regulator did not give the permission to any accounting firms to file audit reports to PCAOB. So it mentioned 'Chinese regulatory authorities have been in communication with the PCAOB and made some positive progress.'. Let's wait and see.
wan666 : Appease the panic and open the market to resist the panic of buying short and then pass.
Come on, 
.
KongWeePeh : Yup, just wait. My bet is still on China.
Hammy Shark : Actually not a big deal unless FUTU itself want to be delisted
Hammy Shark : But this will give an opportunity to shorties.
Jeremyx curtaincall: The only solution I can see is for China to completely allow their companies to open their books. This may not happen. Another miracle will be for Biden to revoke what Trump did on China stocks. This is definitely impossible.
卫斯理传奇 : What is so difficult to use a certified accounting company? Unless the company has something to hide which resulted in being unable to change accounting company.
Jeremyx 卫斯理传奇: All China companies can’t use a certified accounting company under the PCAOB. They just can’t. China says no. Only local accounting company.
jackk1688 卫斯理传奇: China CCP not allow sec and pcaob to audit in China acct firm. China ccp always "close"
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