Why Futu Fell 26% This Week
Shares of China's Futu Holdings (NASDAQ: FUTU) are set to close down more than 26% for the week, according to numbers provided by S&P Global Market Intelligence. The dive follows a state-run media suggestion that the online brokerage company may be ill-equipped to comply with new laws requiring better protection of consumers' personal digital data.
Blame China's newspaper and news website People's Daily, mostly. The media outfit suggests that Futu as well as rival Up Fintech Holding may be in violation of data privacy rules laid out in China's Personal Information Protection Law approved in August and scheduled to go into effect beginning next month.
If the names, news, and subsequent plunges from the stock ring familiar, there's a reason. Generally supported by its own media, Chinese regulators have been clamping down on some of the nation's most notable technology companies since last year, including names like Alibaba Group Holding, JD.com, and Tencent Holdings, which is a key backer of Futu Holdings. Baidu, DiDi Global, and several casino stocks have also suffered thanks to new heavy-handed efforts to keep China's strongest industries in check.
Source Fool.com
