Tencent Holdings to Sell Shares in Futu Holdings Amid Economic Stimulus Push

Futu Holdings Ltd (FUTU:US) is a leading digital financial technology company offering comprehensive digital financial services across multiple markets. Since its inception, Futu has expanded its services to provide global asset allocation and institutional offerings, building a robust ecosystem for investors. The company holds a market capitalization of $11.82 billion.

Tencent's Intent to Sell Futu Stock

In a notable financial development, a shareholder who has not been named has submitted a Form 144 through their broker, Tencent Holdings Ltd., which is Futu’s largest shareholder. The filling, disclosed on September 26, indicates the plan to sell 2.58 million shares of Futu stock. With a price per share of $81.47, the total value of this sale would reach around $210.25 million.

Additional Insights from the Sale

Tencent's sale is part of a broader trend among Chinese companies offloading shares as Beijing rolls out economic support measures. Shareholders across several firms have cashed out over $1 billion in the past week, signaling a market shift. Futu’s stock price surged by 5.99% following Tencent’s announcement, pushing its four-day rally to over 20%. This sale is a notable reflection of Tencent’s investment strategy as it seeks to diversify amid China’s economic adjustments. 

Futu’s Financial Results

Futu Holdings reported impressive financial results for Q2 2024, with a 25.9% year-over-year revenue increase, totaling $401 million. Non-GAAP net profit grew by 8.6% to $166 million. The company saw growth across key segments, including a 44.5% increase in transaction commission income and a 13.2% rise in interest income. Futu’s user base also expanded significantly, with customer assets reaching $74.19 billion by the end of Q2 2024, highlighting its strong market position.