Hong Kong regulator freezes HK$125 million in Futu client account over suspected IPO fraud

The Hong Kong Securities and Futures Commission (SFC) issued a restriction notice that freezes assets worth up to HK$125.247 million in a client account held by Futu Securities International Limited. The assets are linked to a suspected scheme to create a false or artificial demand for shares in an initial public offering. The SFC clarified that Futu itself is not under investigation and that the restriction applies only to the specific client account. Futu must obtain written consent from the SFC before dealing with the frozen assets and must immediately report any instructions it receives concerning them. The investigation remains ongoing.

The action is intended to protect investors and the public interest while the regulator continues its probe into the alleged IPO share manipulation.