Webull Shares Sink 30% After House Panel Alleges China Government Ties
Updated
Updated · CNBC · Oct 7
Webull Shares Sink 30% After House Panel Alleges China Government Ties
3 articles · Updated · CNBC · Oct 7
Summary
Webull shares fell nearly 30% in premarket trading after a bipartisan House Select Committee on China report labeled the online broker a national security threat to U.S. finance.
The panel said Webull is structurally tied to the Chinese government because its software development, data pipelines and core engineering operations rely on infrastructure subject to Beijing's laws.
Lawmakers also alleged Webull misrepresented how many employees are based in China, sharpening scrutiny of the Nasdaq-listed trading platform's operations and disclosures.
Webull rejected the findings, saying the report contained significant inaccuracies and unsupported conclusions and was published without the committee seeking clarification from the company.