Webull shares plunge as US House panel raises China concerns
Webull shares fell as much as 29% after a US House panel raised national security concerns over its China-linked ownership, technology and data.
Shares in online brokerage Webull plunged as much as 29% after a US congressional panel raised national security concerns over the company’s links to China, including potential risks involving American investors’ personal data and funds.
Webull Corporation (Nasdaq: BULL) fell to $5.15 in morning trading on October 7. The shares later recovered some losses to close 19.1% lower at $5.89. Robinhood fell about 3% and Interactive Brokers slipped 2% during the session, while an exchange-traded fund tracking the S&P 500 was down about 0.4%.
US House panel raises concerns over China links
The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party said its investigation had found that Webull was not transparent about its links to China and that its practices could expose American investors’ data to surveillance risks.
The committee raised concerns over the company’s ownership and governance, China-based technology personnel, digital infrastructure, cross-border data practices and funding links. It also questioned whether Webull’s corporate controls were sufficient to protect American investors and their financial information.
The panel said its concerns had increased since Webull began holding customer cash directly in October 2025, arguing that the arrangement could create additional risks for American investors’ funds.
Committee chairman John Moolenaar said Webull’s China-based operations put American investors and their data at risk, pointing to the company’s use of technology providers in mainland China and what the committee described as a China-linked ownership structure.
Webull subsequently disputed the findings, saying the report contained “significant inaccuracies” and unsupported conclusions. The company said its US customer data is stored in the United States and that access to sensitive customer information is controlled there.
Webull expanding research operations in China
Webull is also developing a new research and development centre in Changsha, China, with an estimated construction cost of 350 million yuan, or about US$51.6 million.
Company filings show that construction began in October 2025 and is required to be completed by the end of 2026. Webull already identifies Changsha as the location of its principal research and development operations.
The sharp fall in Webull shares contrasted with the more modest declines in Robinhood and Interactive Brokers. The House committee’s report focused specifically on Webull’s ownership, technology operations and links to China rather than the online brokerage industry as a whole.
The congressional findings do not in themselves impose a fine, suspend Webull’s operations or prohibit the company from doing business in the United States. Attention is now likely to focus on whether US regulators take further action over its ownership structure, data practices or handling of customer funds.
Webull has continued to expand internationally, with operations in markets including Japan, Singapore, Hong Kong and Thailand. Its Thailand business has also expanded its involvement with Pi Securities.
The company announced in September that transactions giving the Webull group an approximately 99.36% stake in Pi Securities had been completed, as it continued to expand its presence in the Thai investment market.
Sources: 247, beincrypto
