Futu Holdings Limited (NASDAQ:FUTU) Q4 2022 Earnings Call Transcript

Peter Zhang: Sorry, this is Peter asking question on behalf of Katherine. So, let me do the translation. We understood that there is a CAC announcement on tightening of the offshore brokers. And we wish to understand what’s the impact on Futu’s business operation, in particular, does Futu see any current AUM outflow fall in the CAC announcement last December? Thank you.

Arthur Chen: Thank you, Peter. Let me answer your question. First of all, I will give you some general colors about our clients’ movement following the end of last year’s inflow. We do witness some our Hong Kong clients because of the €“ there are some sentiment concerns, there are some client outflows in €“ particularly in the first half of January. But I think the overall amount is quite manageable. Roughly, I think the net outflow at the time accounts for roughly 1% to 2% of our total client assets, which compared with the situation we faced at the end of 2021, we think the situation was manageable. And the net outflow situation gradually reversed starting from February. And nowadays, we record daily asset interest. Secondly, regarding the CSRC’s news at the end of last year, I think we €“ number one, we fully accept the regulator’s point of view, and we have a full cooperation with the regulators.

On a net-to-net basis, we do think it will be healthy for the industry’s long-term growth. And also, if you follow the news, there are some clarities from the CSRC spoke persons in the middle of February, mentioning how to deal with the existing clients. They ask for orderly deal with the existing clients. It will be an industry-wide situation. So, we will take very constructive manners to cooperate with the regulators in this regard. Thank you very much.

Operator: Alright. I am showing no further questions. Thank you very much for all your questions. I will now turn the conference back to Daniel for closing remarks.

Daniel Yuan: Thank you, operator. And that concludes our call today. On behalf of the Futu management team, I would like to thank you for joining us today. If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representatives. Thank you and goodbye.

Operator: Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.