PALO ALTO, Calif., May 10, 2021 /PRNewswire/ -- Today Futu Clearing
Inc. announced it received a strategic capital injection in the
amount of $400 million from its
parent company, Futu Holdings, Ltd (Nasdaq: FUTU). As the
backbone that facilitates trading of US equities for clients across
the globe, Futu Clearing is one of the first recipients of Futu
Holdings' strategic investments in international expansion.
"We are pleased with the injection of capital. As we seek to
grow, this amount of funding allows us to expand our counterparty
relationships in the industry, where the cost of capital makes it
prohibitive for some members of the community to secure this level
of funding," said Ila Jehl, CEO of
With this influx of capital, Futu Clearing will be able to scale
its day-to-day operational needs, including clearing and deposits,
supporting margin accounts, and maintaining its high quality
services and uninterrupted trading experience globally.
Earlier this year, Futu Holdings
Limited issued an additional 10,925,000 ADSs, including the sale of
an aggregate of 1,425,000 ADSs by Futu Holdings Limited pursuant to
the full exercise of the option by the underwriters to purchase
additional ADSs to raise capital that will better support the
growing demand in margin financing, international expansion, new
license applications, potential investment and acquisition
According to Futu's full year 2020 financials, Futu's total user
base grew by 58.6% in 2020.
"As Futu Holdings grows, so has the number of transactions
handled by Futu Clearing, making it essential that we expand our
capacity accordingly," continued Jehl. "The $400 million of capital infusion is a strong
indication of Futu Holdings' confidence in the U.S markets and
reflects a commitment to meeting the needs of global
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About Futu Holdings Limited
Futu Holdings Limited (NASDAQ: FUTU) is an advanced technology
company transforming the investing experience by offering a fully
digitized brokerage and wealth
management platform. Pursuing a massive opportunity to facilitate a
once-in-a-generation shift in the wealth management industry and
build a digital gateway into broader financial services. The
fee-generating services include trade execution and margin
financing which allow its clients to trade securities, such as
stocks, warrants, options, futures and exchange-traded funds, or
ETFs, across different markets. Futu enhances the user and client
experience with market data and news, research, as well as powerful
analytical tools, providing them with a data rich foundation to
simplify the investing decision-making process. Futu has also
embedded social media tools to create a network centered around its
users and provide connectivity to users, investors, companies,
analysts, media and key opinion leaders.
About Futu Clearing Inc.
Futu Clearing Inc. provides execution and clearing solutions to
Broker/Dealers, and Registered Investment Advisers (RIAs). Futu
Clearing is an indirect, wholly-owned subsidiary of Futu Holdings
Limited (Nasdaq: FUTU). Futu Clearing was established in 2018 to
provide clearing and settlement services to its clients and
correspondents. Futu Clearing provides robust, modern technology
and professional, experienced support.
SOURCE Futu Clearing Inc.