SINGAPORE - UP Fintech Holding Limited (NASDAQ:TIGR), known for its Tiger Brokers online brokerage platform, has been granted a Type 9 license by Hong Kong's Securities and Futures Commission (SFC), the company announced today.
This license allows Tiger Brokers (HK) Global Limited (TBHK) to offer asset management services, including discretionary accounts for retail and professional investors, as well as asset management for collective investment schemes exclusive to professional investors.
TBHK's asset management services are expected to feature a seasoned investment team skilled in tactical asset allocation and long-term value investing. The team aims to create tailored asset allocation strategies for discretionary account clients and will utilize a user-friendly platform interface to support client wealth accumulation. Additionally, TBHK plans to provide comprehensive services for Hong Kong investment immigration and bespoke investment strategies for managed accounts.
The company highlighted its competitive position in the Hong Kong market over the past year, noting its zero-commission and platform fee policy for Hong Kong equity trading. Tiger Brokers has also introduced Tiger Vault, a wealth management product offering USD and HKD money market funds and U.S. Treasury trading services.
UP Fintech has achieved self-clearing for U.S. and Hong Kong cash equities and U.S. options, which the company claims has significantly reduced its clearing expenses. It also offers features like recurring investment and fractional shares trading for U.S. and Hong Kong shares, aiming to enhance its product offerings and user experience.
This expansion into asset management services in Hong Kong is part of UP Fintech's strategy to cater to global investors through its proprietary mobile and online trading platform. The company provides a range of brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, and investor education.
The information is based on a press release statement from UP Fintech Holding Limited.
InvestingPro Insights
In light of UP Fintech Holding Limited's (NASDAQ:TIGR) recent announcement of obtaining a Type 9 license in Hong Kong, investors may be curious about the company's financial health and market performance. According to InvestingPro data, UP Fintech, also known as Tiger Brokers, has a market capitalization of approximately $531.98 million. The company has demonstrated revenue growth over the last twelve months as of Q4 2023, with an increase of 9.12%. Despite a quarterly revenue decline of -4.73% in Q4 2023, the firm maintains a strong gross profit margin of 82.3%, signaling efficient operations.
From an earnings perspective, Tiger Brokers shows promise with a P/E ratio of 16.34, suggesting investor confidence in its earnings potential. Additionally, the company has been profitable over the last twelve months, which aligns with analysts' predictions that the firm will continue to be profitable this year. This financial stability is crucial as the company expands its asset management services in the competitive Hong Kong market.
On the flip side, UP Fintech's stock has faced headwinds, with significant price declines over the last week, month, three months, and six months. Notably, the 1-week price total return as of a recent date in 2024 shows a decrease of -16.01%. This trend may concern some investors, but it's essential to consider the broader picture and the company's strategic moves, such as the recent license acquisition.
An InvestingPro Tip highlights that Tiger Brokers does not pay a dividend to shareholders, which might influence investment decisions for those seeking regular income from their holdings. Moreover, there are additional InvestingPro Tips available for UP Fintech, which can provide deeper insights into the company's stock performance and outlook. For investors interested in these insights, they can explore more tips by visiting InvestingPro's website and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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