Futu Holdings has retained its investment-grade credit standing after S&P Global Ratings reaffirmed the company’s long-term issuer credit rating at “BBB-” with a stable outlook. The decision comes at a sensitive moment for the online brokerage and wealth management platform, as it manages China-related regulatory pressure while continuing to scale across Hong Kong and international markets.
Key Overview
- S&P maintained Futu’s long-term issuer credit rating at “BBB-” and kept the outlook stable.
- Futu group, including the company and subsidiaries, has a stand-alone credit profile of “bbb”.
- S&P cited Futu’s strong Hong Kong market position, very strong capitalization and adequate funding profile.
- The rating action follows China regulatory action tied to Futu’s mainland operations.
- Futu’s Q1 2026 client metrics still showed growth, with funded accounts up 34.3% year-on-year.
Futu Holdings Limited has announced that S&P Global Ratings has reaffirmed its “BBB-” long-term issuer credit rating, keeping the company within the investment-grade category. According to S&P’s own rating framework, BBB- or higher qualifies as investment grade, making the reaffirmation important for investor confidence, funding access and market perception.
The rating agency also maintained a stable outlook on Futu’s long-term rating. Futu said S&P views the group as having a stand-alone credit profile of “bbb”, supported by a strong position in Hong Kong, continued geographic diversification and very strong capitalization.
The reaffirmation is significant because it comes shortly after regulatory pressure intensified in mainland China. In May, Futu disclosed that the China Securities Regulatory Commission had issued an investigation notice and administrative penalty pre-notification letter relating to certain mainland China operations. The proposed penalty totals approximately RMB1.85 billion, or about US$271 million, while Futu founder and CEO Li Hua faces a proposed personal fine of RMB1.25 million.
Futu has said the proposed penalty remains subject to further proceedings and final determination by the regulator. The company also stated that it is entitled to submit statements, present defenses and request a hearing. As of the end of Q1 2026, funded accounts from mainland China represented around 13% of total funded accounts, while overseas funded accounts continued to grow.
This mainland exposure is central to the credit story. China’s regulator has moved to wind down illegal cross-border securities, futures and fund activity within a two-year rectification period. Under the plan reported by Chinese state media, overseas institutions will be restricted from facilitating new buy orders or fresh capital inflows for existing mainland investors during the transition period, with sell orders and withdrawals permitted.
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Despite that pressure, Futu’s operating base remains sizeable. In its Q1 2026 results, the company reported 3.59 million funded accounts, up 34.3% year-on-year, and 6.28 million brokerage accounts, up 26.8%. Total users rose to 30.2 million, while client assets reached HK$1.22 trillion, an increase of 47.2% year-on-year.
Revenue also remained resilient, rising 24.7% year-on-year to HK$5.86 billion in the first quarter. However, reported net income fell 61.2% to HK$831 million, reflecting the effect of regulatory provisions and related pressures during the period.
Futu has also continued to signal confidence through capital management. The company announced cumulative repurchases of about US$290 million worth of American depositary shares under a broader US$800 million repurchase program running through December 31, 2027.
For investors, the S&P reaffirmation does not remove the China regulatory overhang, but it suggests the rating agency sees Futu’s capital strength, Hong Kong franchise and international expansion as sufficient buffers for now. The key test over the next two years will be whether Futu can offset the mainland China phaseout with growth in overseas markets while preserving its funding profile, client trust and profitability.
Sources used: GlobeNewswire / Futu Holdings Investor Relations / S&P Global Ratings / Xinhua
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