Advertisement banner for "moomoo," an investment platform, displayed at KL Sentral station Malaysia. (Photo by: ruelleruelle/UCG/Universal Images Group via Getty Images)UCG/Universal Images Group via Getty ImagesShares in Futu Holdings, the Hong Kong-headquartered online financial services company known internationally for its Moomoo and Futubull platforms, plunged by nearly 28% on the Nasdaq on Friday after the company said it was facing an investigation by China’s securities regulator. Futu, whose founder and CEO is Chinese billionaire Li Hua, announced in a press release it had “received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter” from the China Securities Regulatory Commission, or CSRC, and its Shenzhen bureau in connection with its operations in mainland China. The CSRC said certain Futu entities in mainland China and Hong Kong “without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China in violation of the Securities Law, the Securities Investment Fund Law and the Futures and Derivatives Law of the People’s Republic of China.”The CSRC proposed “to order the related companies to rectify or cease such activities, confiscate illegal gains, and impose fines” with a penalty of approximately 1.85 billion yuan (approximately $271 million). In addition, the CSRC proposed to impose a personal fine of 1.25 million yuan (approximately $183,575) on Li, Futu said. The penalties are subject to further proceedings and final calculation by the CSRC; Futu said it will cooperate and business outside of mainland China remains normal.Futu’s Nasdaq-traded stock closed at $89.76, a 13-month low, on Friday. Li’s wealth stands at $4.6 billion on the Forbes Real-Time Billionaires List, down from $7.6 billion on the 2026 Forbes Billionaires List published in March. He holds a degree from Hunan University with a major in computer science. Li, who also goes by Leaf Li, founded Futu in 2007; he earlier held senior posts at Tencent and was the 18th employee at the Chinese Internet giant. MORE FOR YOUMoomoo competes in the U.S. with E-Trade, Robinhood Financial and Charles Schwab. It has cited in-depth data, education tools and effective marketing as competitive strengths. Futu, which still boasts a market capitalization of $12.6 billion, has been expanding internationally in markets including Malaysia and Singapore. Through its digital platforms Moomoo and Futubull, Futu offers trade execution and clearing, margin financing, securities lending, and wealth management. It had 29 million users worldwide as of the end of 2025, according to company figures. ForbesTrump, Xi Need To Prove Famous Chinese Adage About Tigers WrongBy Russell FlanneryForbesAction! U.S. Accountant Finds China Social Media Audience At Age 69By Russell FlanneryForbesChina Real Estate Slump Opens “Incredible Opportunities” For CitiesBy Russell Flannery