Chinese billionaire loses $1.7 billion in one day

The wealth of Chinese billionaire Li Lei, founder and chairman of Futu Holdings, fell by $1.7 billion within a single day, reaching $4.7 billion according to the Bloomberg Billionaires Index.

Reason for the decline
The drop came after a regulatory crackdown by Beijing targeting brokerage firms that provide cross-border stock trading services without licenses in China, aimed at tightening oversight of capital flows.

Futu stock crash
Shares of Futu, which is listed in the United States, fell by 28% in one session—its biggest decline in more than three years.

Expansion of the regulatory crackdown
The measures also cover companies such as Tiger Brokers and Long Bridge Securities, with expectations of imposing large fines totaling up to hundreds of millions of dollars, along with confiscating part of revenue.

Background of rapid growth
In the past period, Futu benefited from the surge in Hong Kong initial public offerings, after it worked with more than half of the companies that went public in the market.

Size of affected assets
Citic Securities estimates that assets tied to Futu affected by the regulatory measures exceed $23 billion.

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