Futu to Establish Presence in Australia by Acquiring ASIC-Regulated Subsidiary

Futu Holdings Limited (Futu), a US-listed Chinese online brokerage, announced on Monday that it has successfully acquired its Australian-based subsidiary Futu Securities (Australia) Ltd.

Futu Securities (Australia) Ltd holds an Australian Financial Services License (AFSL), which is granted and regulated by the Australian Securities and Investments Commission (ASIC). Through the acquisition, Futu will be able to provide online brokerage and other financial services in Australia.

As detailed in its latest financial report, Futu saw a significant increase in its total revenue and gross profit during the third quarter in 2021. The company's total revenues in Q3 reached HK$1,731.1 million, 83 percent higher compared to the same period in the last year. The total gross profit increased 91.6 percent year-over-year to HK$1,463.8 million and net income increased 53.1 percent to HK$615.2 million.

It is not surprising that the ascending company choose to tap into the huge market opportunity in Australia, which is one of the biggest economies in the world and home to some of the world's leading financial brokers.

In addition, China has made continuous efforts on strengthening the supervision of its financial market in recent years. Futu was faced with regulatory risks ​due to China's personal data privacy law earlier this year. Stricter regulations may also be one of the reasons that cause the company to consider more potential market opportunities.