House Select Committee on China report calls Webull a national security risk; BULL plunges ~20%
What happened
Webull shares plunged more than 20% on Wednesday after CNBC reported on a bipartisan House Select Committee on China report, set for release today, concluding the online brokerage is 'tied in structural ways' to China's government and constitutes a national security risk. The committee found a 'profound gap' between Webull's public marketing and actual control, with its corporate structure — software development, data pipelines, and core engineering operations — dependent on infrastructure subject directly to Beijing's laws, including a China-based subsidiary for technology development and platform operations. Siebert Financial analyst Brian Vieten suspended his buy rating and price target, saying 'the potential regulatory and operational implications of these findings create a level of uncertainty that we cannot reasonably incorporate into our estimates.' Webull's spokesperson said the report contained 'significant inaccuracies and unsupported conclusions,' and that U.S. customer data is stored and controlled in the U.S.
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Who’s affected
- Webull (BULL): down ~20% intraday to ~$5.80, on pace for the biggest one-day drop since April 2025; stock now -56% from its $13.25 52-week high
- Futu (FUTU) and UP Fintech (TIGR): declined in sympathy as the other U.S.-listed brokerages with Chinese links
- Robinhood (HOOD), SoFi (SOFI): modestly weaker in the same risk-off retail-trading tape