GameStop, AMC Trades to Resume at Chinese Online Brokers
(Bloomberg) -- Up Fintech Holding Ltd. and Futu Holdings Ltd., two fast-growing online brokers that help Chinese investors invest overseas, will resume trading in GameStop Corp. and AMC Entertainment Holdings Inc. after briefly restricting transactions amid extreme volatility in the stocks.
Up Fintech, better known as Tiger Brokers, will also resume trading in Koss Corp. on Friday and make every effort to fulfill customer needs through its clearing systems, it said in a statement. Futu said its upstream system had been restored.
The brokerages had earlier joined Robinhood Markets and other U.S. securities firms in restricting users from buying GameStop and AMC, which have swung wildly on orders from retail investors inspired by WallStreetBets and other online forums.
GameStop soared more than 400% in the first three days of this week, attracting interest from traders around the world. It tumbled 44% on Thursday after brokerages began announcing restrictions, triggering a flood of angry responses from customers.
Webull, a Chinese-backed retail trading platform in the U.S. founded by Alibaba Group Holding Ltd. alumnus Wang Anquan, said Friday that customers could buy and sell GameStop and AMC Entertainment. The brokerage had briefly restricted trading on Thursday before reversing its decision.
The surge in volatility has “generated substantial risk” for brokerages, resulting in the need for stricter requirements on those firms, the Depositary Trust & Clearing Corp., a Wall Street clearinghouse, said on Thursday.
Other overseas brokerages have continued to allow trading in GameStop. South Korea’s major brokerages -- Korea Investment & Securities Co., NH Investment & Securities Co., Mirae Asset Daewoo Co. -- said on Friday they don’t have plans to impose restrictions.
©2021 Bloomberg L.P.