Futu Holdings (FUTU) Q1 FY26 earnings call: guidance and Q&A

What is the understanding and Q2 impact of Friday's CSRC/SFC updates, and can you share the regional breakdown of new and existing paying clients and AUM in Q1?

Management said the update applies industry-wide to cross-border activities involving mainland Chinese investors; it had already halted mainland account opening and enforces a 2-year transition (restrictions, not forced closures). Mainland China is ~13% of funded accounts, ~17% of client assets and ~20% of total revenue. It reaffirmed the 800,000 full-year net-new-account guidance. On splits: Malaysia and Hong Kong together were >50% of Q1 net new funded accounts (Singapore largest of the rest); >55% of group accounts sit under Moomoo (mainly Singapore, U.S., Malaysia); Futu Securities' HK entity holds the largest share of group assets.

“Mainland China founding accounts represent approximately 13% of our Q2 funding account. While related client assets accounted for around 17% of Futu, contributing approximately 20% of total revenue.”

asked by You Fan · answered by Leaf Li / Arthur Chen (via interpreter)

Given the penalty and regulatory updates, are credit lines, funding costs and ratings stable, and how much growth runway remains in mature markets like Hong Kong and Singapore?

CFO said credit facilities remain intact after constructive talks with rating agencies and bank partners, and an S&P annual rating is expected within weeks with confidence in a good result. On runway, he cited BCG data ranking Hong Kong the world's largest cross-border wealth hub and Singapore third, with HK wealth assets exceeding HKD 35T and Singapore HKD 34T versus Futu's group assets just over HKD 1T — implying substantial penetration upside.

“our credit facility remained intact and in the next couple of weeks, we are very likely to get our annual credit rating issued by S&P and I'm very confident there will be a good result”

asked by Leon Qi · answered by Arthur Chen (via interpreter)

What is the opportunity, synergy, margin and TAM for U.S. prediction markets, and what are the product/strategy updates and monetization threshold for the Hong Kong crypto (VATP) business?

On prediction markets, Moomoo Financial and Futu Clearing obtained an OCM license in May; products are seen as more intuitive than futures and a driver of client acquisition, activation and conversion, with peers cited as gaining clients. Management framed the U.S. entry as accumulating product/risk-control know-how to expand into other jurisdictions and said it is engaging regulators elsewhere. On crypto, Penetrate passed phase-two VATP approval and began full operations; strategy centers on internal traffic conversion, product expansion (OTC, token listings, staking, perpetual futures, tokenized securities) and building long-term ecosystem/institutional infrastructure, acknowledging the market is still early-stage.

“a portion of Fuji Security's virtually asset trading volume and AUM has already migrated to penetrate.”

asked by Tal Hung · answered by Leaf Li / Arthur Chen (via interpreter)

Can you break down interest income by category and the QoQ drivers plus quarter-to-date trend, and update Q2 new funded accounts, AUM, net inflows, mark-to-market and trading volume?

CFO said ~40% of Q1 interest income came from idle cash, ~40% from margin financing, and the rest from securities borrowing/lending. The QoQ decline came from lower idle-cash income (December Fed rate cut fully reflected; lower average cash balances as clients bought the dip) and lower securities-lending yield on softer short-selling demand, partly offset by higher margin-financing income. Q2 interest income is expected broadly stable QoQ. Q2 net new funded accounts should be stable sequentially, net inflows retain momentum (with manageable short-term disruption from Friday's rules), and both AUM and trading volume have potential for double-digit sequential growth.

“approximately 40% of the group interest income was from idle cash, another roughly 40% contributed by margin financing. The remaining mainly came from the store going and the lending business.”

asked by Emma Xu · answered by Arthur Chen (via interpreter)

How does Futu view intensifying Hong Kong competition (Bright Smart acquisition, Weibo marketing, banks launching HK/US trading), and are there plans and timeline to expand into Korean equities?

Management framed Hong Kong as still a large long-term opportunity (230,000+ talent-scheme arrivals, rising HNW inflows), citing a >50% local-resident market share, a decade-built one-stop platform, brand trust and AI capabilities as durable moats, and argued competition can consolidate share for leaders. On Korea, Futu began supporting real-time Korean market data in April and plans to launch Korean stock trading first in Hong Kong and Singapore in June, expanding to more regions later; as of May 26 its clients held ~30% and ~18% of the relevant Korean leveraged ETFs on Samsung Electronics and SK Hynix, respectively.

“we have maintained a market share of over 50% among local residents”

asked by Cheng Zhou (Charles Zhou) · answered by Arthur Chen / Leaf Li (via interpreter)