[Summary]
Longbridge Securities was named along with Futu and Tiger Brokers as targets for punishment for illegal cross-border securities operations announced by the China Securities Regulatory Commission (CSRC) on May 22, 2026.
However, I would like to clear this up first. Futu Holdings (FUTU) and UP Fintech (TIGR) are listed companies in the United States, but as far as we can confirm, Longbridge itself is not a company that is traded directly as a listed stock. Therefore, rather than saying ``by what percentage did Longbridge's stock price fall?'' it is more accurate to say that the entire Chinese online securities sector, including FUTU and TIGR, was sold off due to the regulatory shock.
The issue for Longbridge is not the stock price chart, but the transformation of the business model. The focus will be on how quickly the company can shift its focus from the gray cross-border exhibition business for mainland China to official licensed markets such as Singapore, AI investment support, and securities technology for B2B.
First, the conclusion
Longbridge, like FUTU and TIGR, is a next-generation online securities platform based on smartphones.
Access US stocks, Hong Kong stocks, Singapore stocks, and more with the app, combining investment information, community, AI investment support, and wealth management. It also has a B2B securities system business called Longbridge Whale.
On the other hand, this CSRC punishment is quite severe.
The company is said to have been conducting cross-border business related to securities, funds, and futures without the necessary permits and licenses in mainland China, and the CSRC has indicated that it will confiscate the illegal profits and take strict punishment. This is not an issue with Longbridge alone, but rather a regulation of the online securities model itself that has provided overseas securities trading to mainland Chinese residents.
What happened?
On May 22, 2026, the CSRC investigated the illegal cross-border securities operations within mainland China with regard to entities related to Tiger Brokers, Futu Securities International, and Longbridge Securities, and conducted a criminal investigation and issued advance notice of administrative sanctions.
According to the CSRC's official announcement, the act involved was conducting securities business in mainland China without obtaining the necessary permission.
| Item | Contents |
|---|---|
| Publication date | May 22, 2026 |
| Target | Entities related to Tiger, Futu, and Longbridge both inside and outside the precincts |
| Questionable conduct | Unauthorized cross-border securities, funds, and futures-related operations in mainland China |
| Authority policy | Confiscation of illegal income, strict administrative punishment |
| Industry policy | Illegal cross-border securities, term currency, and fund operations will be sorted out in two years of intensive cleanup |
On the same day, it was also reported that eight departments, including the CSRC, will carry out a ``two-year intensive crackdown'' to comprehensively crack down on illegal cross-border securities, term currency, and fund operations by foreign organizations.
In other words, this is not a one-off punishment aimed only at Longbridge. This is the time when Chinese authorities have come to systematically organize cross-border trading routes for mainland investors through overseas online securities.
Sector shock, not “Longbridge stock price”
Since FUTU and TIGR are listed on the US market, their stock prices reacted strongly to the news on May 22nd.
On the other hand, since Longbridge appears to be unlisted, it is difficult to directly confirm its market valuation based on its standalone stock price. There are two things investors should look at:
| What to see | Reason |
|---|---|
| FUTU/TIGR stock price reaction | Reflects market evaluation of peer online securities companies |
| How Longbridge does business | See which markets will drive revenue after regulation |
Therefore, rather than writing ``Longbridge has fallen 30%,'' it is more accurate to write ``Listed peers such as FUTU and TIGR have fallen sharply, and the regulatory risk of the entire industry, including Longbridge, has become conscious.''
Longbridge Business Model
Longbridge is a fintech brokerage with both B2C and B2B.
| Business | Contents |
|---|---|
| Securities app for individuals | Trading US stocks, Hong Kong stocks, Singapore stocks, etc. |
| Margin trading/securities finance | Margin trading, securities lending, interest-related income |
| Wealth Management | Income related to sales and management of funds, bonds, MMF, etc. |
| Community | Information exchange among investors, news, stock analysis |
| AI investment support | News summary, analysis, and natural language interface powered by Longbridge AI |
| B2B Technology | Longbridge Whale provides systems for securities companies and financial institutions |
Acquire customers through personal apps and monetize them through trading, interest rates, and investment products. Furthermore, we will sell the securities system technology we have accumulated to financial institutions. This is what makes Longbridge unique.
Strengths are AI and B2B
Longbridge's point of differentiation is not just low-cost securities, but AI and securities systems.
Longbridge Securities Singapore has announced that it has won the "AI-Brokerage" award at the 2026 SBR Technology Excellence Awards. The AI investment assistant, originally offered as PortAI, has been rebranded as LongbridgeAI and is expanding its ecosystem to include AI investment assistant, natural language interaction, OpenAPI, and global trading services.
Additionally, Longbridge Whale is a B2B business that provides digital solutions for online securities trading and wealth management to securities companies, external asset management companies, family offices, private banks, and others.
This is important.
Even if the company's ability to acquire individual customers in mainland China is restricted, there is still room for the company to rebuild its business if the licensed market in countries such as Singapore and the provision of technology to financial institutions grow.
Weaknesses are regulation and customer migration
On the other hand, its weaknesses are also clear.
| Weaknesses | Contents |
|---|---|
| Mainland China Regulations | Unauthorized cross-border operations subject to punishment |
| Organizing existing customers | Focus on selling and withdrawing existing customers |
| Customer acquisition cost | Competing with moomoo, Tiger, IBKR, etc. in Southeast Asia |
| Regional diversification of revenue | To what extent can we compensate for the volume of transactions originating from mainland China |
| Transparency due to being unlisted | Financial numbers and regional KPIs are less visible than listed companies |
The fact that it is unlisted is especially important from an investor's perspective. With FUTU and TIGR, you can track sales, profits, customer assets, and comments by region in the financial statements, but with Longbridge, public information is limited. Although the strength of the business is visible, it is difficult to verify the impact on profits numerically.
Outlook for the second half of 2026
When looking at Longbridge in the second half of 2026, there are three scenarios.
Bullish scenario
In the bullish scenario, mainland China-related consolidation will progress as expected, and new customers will increase in licensed markets such as Singapore, Hong Kong, and Malaysia.
In addition, if B2B solutions such as LongbridgeAI, OpenAPI, and Longbridge Whale grow, the company could be reevaluated as a securities tech company rather than just a retail securities company.
In this case, there is a possibility that the stock prices of listed peers FUTU and TIGR will be affected as the whole sector is exhausted.
Neutral scenario
In the neutral scenario, compliance with mainland-related regulations will progress, but the speed of overseas growth will remain limited.
Although AI and B2B are highly regarded, it takes time to monetize them. In the retail securities app market, competition from moomoo, Tiger, IBKR, and local securities companies is fierce, and customer acquisition costs are high.
In this case, Longbridge may be able to continue operating, but it will take time for the industry as a whole to recover its valuation.
Bearish scenario
In the bearish scenario, the decline in client assets and transaction volumes originating from mainland China would be large and cannot be compensated for by overseas growth or B2B revenue.
Furthermore, if the costs of dealing with authorities, system outages, customer explanations, and strengthening compliance become heavier, the funds and personnel that can be used for growth investments will be constrained. Even if AI services become a hot topic, unless they are converted into sales and profits, it will be difficult for the company to regain its reputation.
Points that investors should look at
Longbridge alone is difficult to track as a listed stock, so the indicators you should look at are somewhat indirect.
| Items to check | Reasons to watch |
|---|---|
| CSRC final disposition | Check the scope of fines, confiscation, and suspension |
| Dealing with existing customers | Check restrictions on sales, withdrawals, and account functions |
| Licensing business in Singapore and Hong Kong | Seeing room for growth in the formal market |
| LongbridgeAI | Can AI capabilities lead to customer acquisition and billing |
| Longbridge Whale | See B2B monetization progress |
| FUTU/TIGR's financial results | View regulatory impact on peer sectors |
Rather than looking at Longbridge alone, it is better to look at the regional diversification and regulatory compliance of online securities by comparing it with FUTU, TIGR, moomoo, Tiger, IBKR, etc.
Summary
This news surrounding Longbridge is not just a small scandal at a single company.
It is significant that the Chinese authorities have come to sort out cross-border securities, funds, and futures operations for mainland China conducted by foreign online securities companies as a whole industry.
Longbridge's strengths lie in AI, community, B2B securities technology, and presence in licensed markets including Singapore. On the other hand, it is difficult to know from public information alone how much of the customer base originating from mainland China will be lost and how much of an impact it will have on profits.
The focus for the second half of 2026 is clear.
How much can Southeast Asia, AI, and B2B compensate for the restructuring of mainland China?
Only companies that can demonstrate this in numbers will be reevaluated after this regulatory shock. Longbridge is a candidate, but the limited transparency that comes with being unlisted should be viewed with a grain of salt.
Source
This article was created based on CSRC official announcements, Longbridge official information, and Longbridge related releases.
- CSRC “Confirmation of the law and regulations”
- c100028/ / c7634326/
- CSRC "Remedy Plan" Responder Question
- Longbridge Singapore “About Longbridge”
- MAS Financial Institutions Directory "Long Bridge Securities Pte. Ltd."
- Longbridge Whale “About WHALE”
- PR Newswire "Longbridge Securities Wins at the SBR Technology Excellence Awards 2026"
- Confirmation date: 2026-05-23