The China Securities Regulatory Commission has already explained that the purpose is to control foreign exchange, mainly to discourage mainland investors from investing RMB funds in the US stock market through the Futu platform, because this is a loophole in the outflow of RMB capital. On the Fortis Niu platform, you can convert the funds in the US dollar account into Hong Kong dollars and trade in the Hong Kong stock market, or you can convert the funds in the A-share market into Hong Kong dollars, US dollars, open an account in the Hong Kong stock/US stock market, then transfer the funds to the Hong Kong stock/US stock account for trading. The loophole is that funds in the Hong Kong/US stock market can be transferred to Hong Kong/Bank of America personal accounts. Complete the outflow of funds. This is not allowed by China's foreign exchange management system. As long as this loophole is closed, the China Securities Regulatory Commission will not be able to control it. Because Futu is registered in Hong Kong and has branches in Singapore, the US, and Australia. The Chinese government has no right to interfere, replace, or fine foreign companies.
Therefore, the “rectification” has little impact on Futu; it's just that mainland customers cannot continue to grow. Overseas customers and transactions are not affected in any way. However, they cannot convert HKD/USD into RMB on the Futu platform, trade A-shares, or transfer RMB A shares to personal accounts in mainland China. The purpose of the China Securities Regulatory Commission is only to block the free inflow/outflow of RMB and foreign capital on the Futu platform.
So the impact is minimal.
The market is overreacting because no one in the company comes up with a clear explanation, and they are also afraid that the explanation will not be thorough, they will be caught by American investors, and the legal lawsuits are endless...