On May 27, Futu Holdings rose 5.29% in after-hours trading, trading at $113.11/share, with trading volume of $16.58 million. The stock extended its rebound from last week's sharp sell-off triggered by a regulatory penalty from the China Securities Regulatory Commission.

Futu disclosed on May 22 that it received an administrative penalty notice proposing a total fine of approximately 1.85 billion RMB for conducting unauthorized securities, fund sales, and futures businesses in mainland China without required licenses. The stock initially plunged over 25% on the news. However, multiple Wall Street institutions have since provided supportive assessments. Morgan Stanley reaffirmed Futu as its top pick for recovery following the penalty, while S&P Global Ratings noted the company's non-mainland business will sustain stable growth over the next two years. Goldman Sachs downgraded the stock from buy to neutral but set a target price of $102.13, above post-crash levels.

Critically, mainland clients now represent only approximately 13% of Futu's total funded accounts as of Q1, down from over 30% in 2022, with Hong Kong and overseas revenue growth exceeding 65% in 2025.

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