Tencent-Backed Futu Taps Singapore's Retail Trading Boom: Bloomberg

Chinese online broker Futu Holdings Ltd FUTU set up a base in Singapore to tap the retail investor trading boom in Southeast Asia, Bloomberg reports.

• The Tencent Holdings Ltd TCEHY-backed company started an office in the city-state last week to further its geographical footprint in Malaysia and Thailand along with the U.S. 
• Futu launched its zero-commission, retail-focused trading app and reportedly had over 13 million global users.
• Growing remote working facilitated trading in Singapore, driving the brokerage revenue.
• Online brokers like Futu have been dubbed as Chinese Robinhood, gaining from the pandemic-induced retail obsession. 
• The low commission trading apps offered solace to the jaded, home-ridden individuals to even challenge institutional investors. 
• Futu’s shares have more than tripled this year after climbing 343% in 2020, intensifying founder Leaf Hua Li’s wealth.
• The company picked Singapore as its Southeast Asian headquarters due to its support for the technology sector and the high smartphone acceptance rate.
• Singapore has at least ten local brokers for retail traders and behemoths like Interactive Brokers Group Inc IBKR and TD Ameritrade regardless of some consolidation, including the Charles Schwab Corp SCHW departure.
• Futu expected 700,000 new paying clients for its online brokerage business in 2021, targeting a 135% growth, with Singapore and the U.S. accounting for 20%. Most of its revenues came from Hong Kong and mainland China users.
• Price action: FUTU shares traded lower by 0.89% at $140.95 in the premarket session on the last check Wednesday.