⚡ Tiger Brokers Parent Swings to Loss as China Penalty Wipes Out Its Profit

UP Fintech Holding, parent company of Tiger Brokers, posted a $26.9 million net loss for the first quarter, reversing from a $30.4 million profit a year earlier, after Chinese regulators imposed approximately $59.7 million in fines and confiscated illegal gains. The Beijing branch of the China Securities Regulatory Commission penalized Tiger Brokers subsidiaries in late May for operating unlicensed cross-border securities, fund, and futures businesses on the mainland.

Despite the regulatory blow, operational performance remained solid. Revenue climbed 26.3% to $154.9 million, with commissions up 15.3% and interest income rising 19.8%. The penalty, which hit the “others, net” line with a $64.1 million charge, was the sole driver of the loss. Tiger Brokers would have remained profitable without it.

The enforcement follows similar action against rival Futu Holdings, which faces proposed fines of $271 million. Both firms have operated in a regulatory grey zone for years, serving mainland clients through Hong Kong entities without proper Chinese approvals. Both were first warned in 2022.

FXnCO Insight

Brokers facilitating mainland China access should expect continued regulatory pressure as Beijing clamps down on unlicensed cross-border platforms.

Source: Finance Magnates