E-brokers are big reach for Beijing’s long arm – Reuters

E-brokers are big reach for Beijing’s long arm – Reuters

HONG KONG, Nov 4 (Reuters Breakingviews) - Even Beijing's long arm has its limits. There are indications that authorities are reaching for trading apps that cater to rich investors with money abroad. Barring some extreme steps, however, these hot online brokers probably can thrive.

Hints of a crackdown have been dropping for months. State media published read more an article in October warning that $9 billion Futu (FUTU.O) and rival UP Fintech , also known as Tiger Brokers may violate new data privacy laws. Soon after, a central bank official chided the industry. Despite a share rally this week thanks to a buyback plan, Futu, China’s answer to Robinhood, has lost over 60%, or nearly $18 billion, of its market value since July.