China’s CSRC Hits Futu Holdings with Record $271M Penalty Amid Regulatory Crackdown

China's securities regulator has imposed a staggering 1.85 billion yuan ($271 million) fine on Futu Holdings, marking one of its most aggressive enforcement actions against financial non-compliance. The penalty sent Futu's shares plunging 26% in a single trading session, compounding a 46% decline over the past six months.

The CSRC alleges Futu illegally operated brokerage services, securities investment funds, and futures trading without proper mainland China approvals, violating multiple financial laws. CEO Li Hua faces a separate 1.25 million yuan ($183,575) penalty as the case undergoes judicial review.

Regulatory contagion spread to competitor Tiger Brokers, whose shares crashed 23% amid broader sector uncertainty. The crackdown highlights Beijing's tightening grip on cross-border financial activities despite recent pro-market rhetoric.