Futu Announces Investment Grade Rating from S&P Global Ratings
June 02 2021 - 10:57PM
Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq:
FUTU), a leading tech-driven online brokerage and wealth
management platform in China, today announced S&P Global
Ratings (“S&P”) has assigned an investment grade long-term
issuer credit rating “BBB-” to the Company. The outlook on the
long-term rating is stable. A “bbb” GCP (group credit profile) has
also been assigned. The rating on Futu reflects the Company’s
leading market position in the Hong Kong brokerage market, strong
capitalization with solid financing standing, and prudent risk
controls.
Futu is the first online broker in the
Asia-Pacific region to have obtained international rating, and the
first Hong Kong-based broker to have obtained standalone investment
grade issuer rating, with its “bbb” GCP being the highest grade
GCP/SACP (standalone credit profile) that S&P has assigned to
securities firms in Greater China.
According to S&P, Futu has good market
presence in Hong Kong as a retail-focused online broker, and is
well-placed to take advantage of the brand recognition to expand
overseas market such as US and Singapore. Despite the current
reliance on brokerage, Futu is striving to develop new business
segments including wealth management, enterprise services, and
diversify revenue sources, geographic reach, product categories and
client base. Futu’s rating is well-positioned by its strong RAC
(risk-adjusted capital), and S&P anticipates that Futu will
sustain the capital adequacy to support its rapid growth. Futu’s
funding sources can satisfy its funding needs thanks to the large
collateral pool and prudent credit policies, and the company will
pay more attention to the diversification of funding channels in
the future. In addition, Futu also benefits from business synergies
with Tencent, its second largest shareholder by voting rights as of
end-2020.
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. The Company primarily serves the emerging affluent
population, 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
Company provides investing services through its proprietary digital
platforms, Futubull and moomoo, each a highly integrated
application accessible through any mobile device, tablet or
desktop. The Company's primary 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.
For investor inquiries, please
contact:
Investor RelationsFutu Holdings
Limitedir@futuholdings.com
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