China Puts $FUTU’s Future On Hold

Last year, Chinese officials began looking to crack down on mainland clients using offshore trading services. Many believed New York-listed Futu Holdings and UP Fintech Holdings would face regulatory risks because they lack licenses in China. 🚨

Unfortunately for investors, that risk has come to fruition. Today, China’s securities regulator banned the companies from opening new accounts with mainland Chinese investors.

The new rules will allow existing customers to continue trading. However, brokerages will have to take corrective measures to prevent money from mainland clients from entering their platforms.  In short, no new money can unlawfully flow into their accounts. 

The news comes just a day after Futu delayed its listing plan in Hong Kong, stating it was “clarifying certain matters” with the Hong Kong Stock Exchange.

Today’s ban hits $FUTU‘s business particularly hard, given its 2020 annual report said that a large number of its clients were mainland Chinese citizens. The company’s shares are down roughly 31% today, erasing all their year-to-date gains. 📉

Meanwhile, shares of UP Fintech Holdings ($TIGR) are down 28%. 🔻

Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

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Only Some EV-Makers Delivered

Electric vehicle (EV) manufacturers came out with their fourth-quarter delivery numbers today, sending their stocks all over the place. 📊

First, let’s start with everyone’s favorite, Tesla, which delivered mixed news to investors. It managed 1.81 million EV deliveries around the globe in 2023, meeting its full-year guidance and narrowly topping the consensus estimates. That was up 38% YoY but slowed from 2022. 

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Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. 👀

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars. 

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AI’s Copyright Crisis Begins

We all knew copyright law would be a key issue at the heart of the artificial intelligence (AI) revolution, but we didn’t know when. Well, the time has come. ⌛

Today, The New York Times filed a lawsuit against Microsoft and OpenAI, accusing them of infringing copyright and abusing the newspaper’s intellectual property. In its court filing, the publisher said it looks to hold the two companies accountable for the “unlawful copying and use of The Times’s uniquely valuable works,” claiming billions in statutory and actual damages.

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