Hong Kong-based wealth management firm, Fufu holdings, has announced the expansion of its operations in Australia. This is coming following the company’s acquisition of its subsidiary, Futu Securities Australia.
The deal will enable Futu Holdings to offer its online brokerage services while expanding its presence in the region.
Futu Holdings says the deal also means it has been transferred the Australian Financial Services License (AFSL), which was previously held by Futu Securities. The Australian Securities and Investment Commission (ASIC) is the regulator responsible for issuing the license in Australia, and the acquisition means Futu Holdings will now be subject to the same regulations.
Futu To Tap Into The Massive Potential Of The Australian Market
Futu, while announcing the acquisition, noted that there is massive potential in the financial services industry in Australia, and the company hopes to tap on this potential to expand its services. Already, the Australian market has been home to some of the biggest names in the financial brokerage sector in the world.
The company will be offering brokerage services and other financial services in Australia following the acquisition.
Meanwhile, Futu Holdings recently announced an impressive third quarter for 2021. The firm stated that it recorded a massive surge in revenues. In addition, the company recorded a massive increase in trading volumes compared to the volume for the third quarter of the previous year.
Similarly, Futu announced an increase in the number of new clients on its platform. It total registered new clients increased by 119.9% in Q3 2021 compared to the number at the same period last year. This was achieved despite the level of market uncertainty caused by the COVID-19 pandemic.
Futu Expand Operations After Dominating The Hong Kong Market
Apart from the above, Futu has enjoyed an impressive market penetration in Hong Kong, as the company says the figure is rising steadily. The Census and Statistics department recently released data that shows that Futu has gained an impressive one-third of the country’s adult population as users. This makes the company the largest operating brokerage firm. Despite the massive growth, Futu still wants to expand its operations to other regions, the firm is now placing attention on Australia, after already establishing a relationship with its subsidiary.
