Tiger, Futu post strong overseas gains after Beijing clampdown stalls mainland growth
Tiger Brokers and Futu Holdings, two prominent online brokerages, reported strong second-quarter growth driven by overseas expansion. This growth comes despite Beijing's intensified crackdown on illegal cross-border stock trading, which has prompted a shift in strategy. UP Fintech Holding, parent of Tiger Brokers, saw revenue increase 31.4 percent year on year to a record US$182.3 million, though net income dipped slightly to US$39.4 million. Futu posted a 35.6 percent rise in revenue to HK$7.2 billion (US$918 million) and a 41.6 percent increase in net income to HK$3.64 billion. Both firms expanded their client bases in markets like Hong Kong, Singapore, Malaysia, and the US.
Futu's 41.6 percent net income growth and Tiger Brokers' 31.4 percent revenue increase in Q2 reflect a successful pivot to overseas markets, particularly in Southeast Asia and the US. This expansion directly addresses Beijing's clampdown on cross-border trading, which has compelled Chinese brokerages to seek growth beyond the mainland. For example, Futu's funded accounts grew 33.6 percent, with Malaysia, Hong Kong, and Singapore being key contributors, while Tiger Brokers saw Hong Kong client assets grow almost 30 percent quarter on quarter. The strategic shift demonstrates how regulatory pressures in China are reshaping the regional fintech landscape. Brokerages are adapting by enhancing compliance tools and expanding product offerings in new jurisdictions, such as Tiger's fractional share trading in Singapore and index options in Hong Kong. The thing to watch is whether this overseas growth can fully offset any long-term impact from the mainland's regulatory environment, especially as competition intensifies in these new markets.
