Congressional report flags Webull's China ties
A House Select Committee on China report says Webull's ownership, technology and compliance frameworks are tied to China in ways that could expose U.S. customer data. The findings sent Webull shares down about 30% before the open.
By Paolo Confino The online trading platform Webull is a national security threat, according to a new congressional report released Wednesday, because of its previously undisclosed ties to the Chinese government. S. citizens. A close look into Webull's corporate structure found that a mainland China-based subsidiary handles the platform's technology and operations.
"Webull's ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People's Republic of China," the committee found, according to CNBC, which first reported the news. News of the findings sent Webull stock plummeting around 30% ahead of Wednesday's open, according to MarketSurge. Stock Market Today: S&P 500 Hits Highs, Yields Fall The committee alleged "a profound gap" between Webull's marketing as an American company and the reality, in which Chinese subsidiaries run the company.
Congress began investigating Webull more actively in October 2025 when it began carrying users' cash directly, rather than relying on a clearing firm to facilitate customer trades. Once that happened, it meant Webull ---- a Chinese company ---- was acting as a direct custodian for billions of dollars in Americans' money. As a trading platform, Webull is similar to Robinhood or Charles Schwab founded by Wang Anquan in 2016. Since then, it has expanded to about 16 countries mostly in Europe and Southeast Asia.
6 billion of customer assets. S. in April 2025 via SPAC. Shares spiked around eight times higher to nearly $80 a share in the immediate aftermath of the IPO.
Since then, shares have come back down dramatically and now trade at $6 a share. Webull shares trade slightly lower for the year, after briefly rising above 10 in Septmeber, according to MarketSurge. com Investor's Business Daily - Your edge in the stock market This content was created by Investor's Business Daily, which is operated by Dow Jones & Co. IBD is run independently from Dow Jones Newswires and The Wall Street Journal.
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