Recently, many have noted the growing interest of Chinese investors looking to diversify their portfolios and to invest in the US stock market to three main trends. First, Chinese investors want to invest in companies they are familiar with and that they interact with on a daily basis- which is why they seek to invest in Chinese companies that are listed on the US stock market. Second, several American brands carry significant international appeal- and Chinese investors are becomingly increasingly interested in investing in them. And third, it is easier than ever to travel to the US, where Chinese investors have the opportunity to discover and invest in various US companies that peak their interest.
Mr. Li, founder of Futu Securities noticed this growing trend and interest among the Chinese investment community for access to the US markets. This resulted in his creation of a new financial gateway for Chinese investors who want to diversify their portfolios and seek opportunities to invest in the US stock market. Mr. Hua Li founded Futu Securities in 2012, primarily to provide mobile and desktop based trading and investing applications for the Hong Kong Stock Exchange. Fast forward five years, and three million app downloads later, Futu Securities has become one of the fastest growing financial technology companies in Asia and has increased revenue by 500 percent each year. With the growing Chinese interest in U.S. Markets and Futu Securities position in the market, Mr. Li looked to Nasdaq for high quality, real- time US stock market data. Today, Futu Securities is one of the only Chinese brokerages to offer retail trading in Hong Kong and US stocks.
There are several differences in market structure between the Hong Kong and US, and prior to working with Nasdaq, Futu Securities had to work with each individual US exchange for market data- a cumbersome, complicated process.
To help Chinese investors unlock access to the US stock market, Mr. Li's relationship with Nasdaq provided the solution. “Nasdaq Basic and Global Index Data Service (GIDS) provide us with real-time market data that we were unable to receive before in a simple and single feed. The products provide the best bid and offer, and last sale information for all U.S. exchange-listed stocks - which is what Chinese investors are really keen on seeing.” Nasdaq Basic offers the single largest liquidity pool for US cash-listed equities and is twice as accurate as other Level 1 US market data alternatives. GIDS provides intra-day index values, index component data and end-of-day summary reports for Nasdaq-licensed indexes and select third party indexes. With the help of Nasdaq Basic and GIDS, Futu Securities is helping open doors for the Chinese investment community.
“What separates Futu from the pack is its web-based DNA. While most Hong Kong-based brokers tend not to optimize their online platforms because of costs, Futu has placed user experience and access at the forefront,” said Mr. Li. And with the ever-changing pace of the global financial markets, today’s investors (in China and abroad) require the same intuitive approach, quality, and accuracy they’ve come to expect from their other devices and services.
With Nasdaq as a trusted partner, Futu Securities is aggressively growing its client base while mitigating competitive risk outside of China, all by powering its applications with real-time best bid and offer quotes for the entire US-listed stock market.
Read the case study of this relationship here.