- Investment firm Goldman Sachs downgraded Futu Holdings (NASDAQ:FUTU) from Buy to Neutral.
- The downgrade follows a China Securities Regulatory Commission (CSRC) investigation into Futu Holdings for unlicensed operations in mainland China.
- Futu Holdings stock experienced a significant decline, plunging nearly 28% on the Nasdaq.
Futu Holdings (NASDAQ:FUTU) is a Hong Kong-based financial technology company. It is the parent company of the Moomoo and Futubull online trading platforms. These platforms provide brokerage services, allowing individuals to trade stocks and other financial assets.
On May 25, 2026, the investment firm Goldman Sachs issued a stock downgrade for Futu Holdings. The firm changed its rating from Buy to Neutral, suggesting less confidence in the stock’s near-term growth. The stock price was $89.76 at the time the new rating was posted.
This downgrade follows a significant regulatory action from Chinese authorities. The China Securities Regulatory Commission (CSRC) is investigating Futu Holdings. The regulator alleges that the company operated in mainland China without the necessary licenses for its securities, fund sales, and futures businesses.
The market reacted strongly to the news of the investigation. As highlighted by Forbes, shares plunged by nearly 28% on the Nasdaq. The stock price fell by $34.10, or 27.53%, in a single day, with a trading volume of over 61.3 million shares.
Following the stock’s sharp decline, The Schall Law Firm announced it is investigating claims for investors. The investigation examines whether Futu Holdings issued misleading statements or failed to disclose the risks associated with the Chinese regulatory probe, which could be a violation of securities laws.
