Futu Holdings Ltd (NASDAQ:FUTU) shares are moving lower in premarket Tuesday after the online brokerage and wealth management platform said its ‘Futubull’ app will be removed from stores in Mainland China as of May 19.
“In response to the Chinese Securities and Regulatory Commission’s (the 'CSRC') rectification requirements on cross-border securities business, Futu will remove the Futubull app from app stores in Mainland China in order to bring its operations into full compliance with such regulatory principle.”
The company clarified that the existing clients based in China can still make trades while users outside of this country may continue to download the app.
Similarly, UP Fintech (NASDAQ:TIGR) shares are down after the company said its 'Tiger International' app will be removed from the Chinese mainland application market starting from May 18.
Futu and UP Fintech shares are down 8% and 5%, respectively, in premarket Tuesday.