SFC Freezes HK$125M at Futu in Suspected IPO Fraud Probe

Hong Kong regulator restricts HK$125M assets at Futu Securities linked to suspected IPO demand manipulation. The firm is not under investigation, and operations remain unaffected.

Woofun AI reports that the Hong Kong Securities and Futures Commission has issued a restriction notice to Futu Securities International (Hong Kong) Limited. The order prohibits the brokerage from dealing with or disposing of up to HK$125 million in assets held in a specific client account. The entity holding the account is suspected of participating in a fraudulent scheme designed to create a false appearance of demand for shares in an initial public offering. The SFC clarified that Futu Securities is not the subject of the investigation, and the notice will not impact the firm or its other clients. The regulator stated the action serves the interests of the investing public, and the investigation remains ongoing.