Futu not under investigation as Hong Kong SFC freezes HK$125M client assets

The Hong Kong Securities and Futures Commission has issued a restriction notice freezing assets worth up to HK$125.247 million in a client account at Futu Securities International Limited as part of an ongoing investigation into suspected IPO share manipulation. Summary Hong Kong’s SFC has frozen HK$125.2 million linked to a suspected IPO share manipulation scheme. The restriction applies to a client account at Futu, while the brokerage itself is not under investigation. Futu must obtain the SFC’s approval before handling the restricted assets and report any related instructions. The investigation remains ongoing as the regulator seeks to protect investors and the public interest. According to the Hong Kong Securities and Futures Commission (SFC), the restriction applies to assets held by a certain entity suspected of participating in a fraudulent scheme designed to create a false or misleading appearance of demand for shares in an initial public offering. The regulator said Futu is not the subject of its investigation and stressed that the restriction notice will not affect the brokerage or any of its other clients. The action targets a specific customer account and prevents the a...