The stock prices of both brokers fell in the days following the news. But Futu’s stock is now up more than 40% this year, while shares in Up Fintech have jumped about 33%. Interest rates in Hong Kong, where both Futu and Up Fintech have clients, have tracked U.S. rates higher. This is a classic business model of commercial banks but brokers’ clients often pay little attention to the interest rates they are offered. There are more than 300 million small investors in mainland China, but they have become more cautious this year, shifting their money out of stocks and into safer investments.

Source: Wall Street Journal October 24, 2023 11:58 UTC