Futu Holdings Ltd. (FUTU), a wealth management platform located in Hong Kong, closed Friday’s regular trading session at $35.63 after declining 1.38% during the day. In the premarket session, FUTU stock has further declined by 6.01% and consequently is trading at $33.49 at the time of the writing.
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FUTU to Lead iWOW Capital Raising
FUTU stock is in decline since the announcement from the company that it would lead to the capital raising of iWOW. iWOW is the company that makes TraceTogether tokens in Singapore. On Thursday, it reported that it had selected Futu Singapore, a subsidiary of Futu Holdings, to lead the IPO book building as well as share issuance concerning its upcoming listing on Singapore Exchange.
What’s Up in Financial Sector?
Financial stocks like FUTU are facing testing times, as the financial sector is under strain due to rising inflationary pressure as well as geopolitical tensions, which are weakening the markets and aren’t expected to die down in near future. The Dow Jones US Banks Index has been down more than 20% since mid of January, owing to the same reasons. The growing inflation has forced FED to hike the interest rate, which, in upcoming months, could provide a major boost to the financial sector.
FUTU to Get Entangled in Regulatory Troubles?
In recent days, FUTU has been added by the SEC to the list of the companies that would be liable under the US auditing oversight law. The companies added to the list are required by the US authorities to comply with the audit inspection rules or else face expulsion from the American stock exchange if they non-complied for three years consecutively. The step has spurred concerns for FUTU in the wake of the already tense environment between the US and China in differences over audit regulations.
Final Remarks
Looking ahead, the immediate future doesn’t portray a great picture for the FUTU stock, as the frictions between US and China could constantly cause a decline in the stock. In the long run, it seems that the company is taking just the right steps in the right direction. So, investors should closely look at the general market-related conditions and invest in FUTU at the most suitable time.
