The international trading boom has sent a Chinese broker on a wild ride.
Worth just $1.2 billion a year ago, Nasdaq-listed Futu Holdings Ltd. has surged in value and at its peak in February was worth nearly $26 billion. Despite a pullback since then, the company, which is backed by Tencent Holdings Ltd. , still had a market capitalization of more than $14 billion as of Wednesday’s close.
Futu and other Chinese online brokers have benefited as younger investors have poured money into booming markets, both in the U.S., and in Hong Kong and mainland China. They have also thrived since investors often see the sector as a good way to bet on a broader rally.
Alongside Futu, the smaller UP Fintech Ltd., which is known in Asia as Tiger Brokers, has jumped in U.S. trading. And in Shenzhen, East Money Information Co. , which focuses on onshore Chinese stocks, has nearly doubled in value over the past year. At nearly $36 billion as of Wednesday, it is now worth more than Interactive Brokers Group .
Alex Cheung, a 27-year-old in Hong Kong with a business degree, said he has been buying and selling stocks, mostly in the U.S., for about a year using the company’s Futubull app. “You don’t need to be a sophisticated investor to trade on Futubull,” said Mr. Cheung, who posts online about investing under the name Shiba Daytrader.