Shares of Webull, the online trading platform, fell sharply on Wednesday after a bipartisan US House committee said the brokerage has deep structural ties to China that create national security risks.
The stock dropped as much as 29 percent in morning trading to $5.15, according to the Economic Times, while the New York Post put the day's decline at 18 percent. NDTV Profit reported the shares were down more than 20 percent in late-morning trading, falling $1.47 to $5.81.
What the House panel alleged
The House Select Committee on China said Webull's ownership, technology infrastructure, workforce, data routing, corporate financing and compliance systems "remain closely connected to China." The committee pointed to a report finding that 863 employees — 62 percent of Webull's global workforce at the end of 2025 — are based in mainland China.
The panel argued there is a "profound gap" between Webull's marketing of itself as an American company based in St. Petersburg, Florida, and its actual compliance with Chinese laws, which can require cooperation with the government, including through data transfers. The committee's concerns escalated after Webull began carrying customer cash directly in October 2025, creating what it called a "structural exposure of billions of dollars in American capital."
Company responds
A Webull spokesperson rejected the findings, saying the report contained "significant inaccuracies and unsupported conclusions" and was published without seeking clarification from the company. Webull says it operates from its US headquarters and stores US customer data in the United States.
The selloff also weighed on rival brokerages with Chinese links: Futu Holdings and UP Fintech declined, while Robinhood fell 3 percent to $108.93 and Interactive Brokers slipped 2 percent to $88.77.
Sources:
New York Post: Trading app Webull tanks over 'ties' to Chinese government
The Economic Times: Webull's 29% stock plunge after House report on China ties
The stock dropped as much as 29 percent in morning trading to $5.15, according to the Economic Times, while the New York Post put the day's decline at 18 percent. NDTV Profit reported the shares were down more than 20 percent in late-morning trading, falling $1.47 to $5.81.
What the House panel alleged
The House Select Committee on China said Webull's ownership, technology infrastructure, workforce, data routing, corporate financing and compliance systems "remain closely connected to China." The committee pointed to a report finding that 863 employees — 62 percent of Webull's global workforce at the end of 2025 — are based in mainland China.
The panel argued there is a "profound gap" between Webull's marketing of itself as an American company based in St. Petersburg, Florida, and its actual compliance with Chinese laws, which can require cooperation with the government, including through data transfers. The committee's concerns escalated after Webull began carrying customer cash directly in October 2025, creating what it called a "structural exposure of billions of dollars in American capital."
Company responds
A Webull spokesperson rejected the findings, saying the report contained "significant inaccuracies and unsupported conclusions" and was published without seeking clarification from the company. Webull says it operates from its US headquarters and stores US customer data in the United States.
The selloff also weighed on rival brokerages with Chinese links: Futu Holdings and UP Fintech declined, while Robinhood fell 3 percent to $108.93 and Interactive Brokers slipped 2 percent to $88.77.
Sources:
New York Post: Trading app Webull tanks over 'ties' to Chinese government
The Economic Times: Webull's 29% stock plunge after House report on China ties
