Detailed narrative
Strong Client Acquisition and Asset Growth
Futu acquired 252,000 net new funded accounts in Q2 FY26, a 23.7% year-over-year increase, bringing total funded accounts to approximately 3.84 million, up 33.6% year-over-year. Total client assets grew 43.6% year-over-year to HKD 1.4 trillion, primarily due to higher market valuation of client stock holdings and, to a lesser extent, net asset inflow. The average revenue per new client improved sequentially across multiple overseas markets, including the U.S., Singapore, and Hong Kong, all posting double-digit growth.
Record Trading Volume and Market Conditions
Total trading volume reached a new record of HKD 6.42 trillion, surging 78.8% year-over-year and 54.6% quarter-over-quarter. This was driven by strong client interest in AI-related U.S. stocks, with U.S. stock trading volume growing 67.2% sequentially to HKD 5.02 trillion. Hong Kong stock trading volume also increased by 15.9% quarter-over-quarter to HKD 1.17 trillion, largely attributable to heightened activity in semiconductor, China Internet, and newly listed companies.
Overseas Market Expansion and Profitability
Client acquisition accelerated in Hong Kong and Malaysia, with Malaysia leading all markets in net new funded accounts for the third consecutive quarter. Singapore's registered users surpassed the 2 million milestone. Singapore has already passed breakeven a couple of years ago, and Malaysia recently achieved operational breakeven, demonstrating the growing maturity and profitability of international operations. The average client assets rose quarter-over-quarter across every overseas market, indicating growth in both client numbers and wallet share.
Regulatory Impact and Client Outflows
Following the release of new regulations on May 22, the company experienced cumulative client outflows of approximately mid-single-digit percentage of total client assets, primarily in June and July. Mainland outflows were compliance-driven adjustments, while Hong Kong outflows reflected initial risk-off sentiment. The pace of client attrition started to moderate in August, with Hong Kong client retention rates staying above 98% and overseas market retention remaining stable quarter-over-quarter.
Product Innovation and Diversification
Futu Securities became the first and only broker in Hong Kong to launch securities-backed margin financing for virtual assets in June, exploring unified buying power for digital assets. In the U.S., moomoo launched a prediction market trading service in early June, which saw over $200 million in event contracts traded within one month. This initiative is driving new client acquisition and engagement with the core brokerage business, with potential for future expansion to other regions.
Wealth Management and IPO Services
Wealth Management client assets grew 10% year-over-year to HKD 180.2 billion, with a notable shift in client preference from money market funds towards equity funds. The company also expanded its IPO distribution and IR client base to 683, up 32% year-over-year. The Hong Kong IPO market sustained strong momentum, with nearly 60% of newly listed companies choosing to partner with Futu, serving as joint book runners for multiple high-profile listings.