Futu (FUTU) Q2 2025 Earnings Call Transcript

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Date

Wednesday, August 20, 2025, at 7:30 a.m. ET

Call participants

• Chief Executive Officer — Daniel Yuan
• Chief Financial Officer — Arthur Chen

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Takeaways

• Total Funded Accounts-- Approximately 2,900,000 as of the end of Q2 2025, representing 41% year-over-year growth and an 8% quarter-over-quarter increase, with more than 50% now sourced from clients outside Futu Securities Hong Kong.
• New Funded Accounts-- 204,000 added during the quarter, up 32% from Q2 2024; Hong Kong led new account additions for the third consecutive quarter.
• Client Asset Inflows-- Net asset inflow nearly doubled versus the same period last year, indicating accelerated organic asset growth.
• Total Client Assets-- Reached HKD $974 billion, up 68% year over year and 17% quarter over quarter as of the end of Q2 2025, marking a new company record.
• Quarterly Retention Rate-- Exceeded 98%, reflecting high global client engagement and loyalty.
• Trading Volume-- Total trading volume reached HKD $3.59 trillion in the second quarter, marking 121% year-over-year growth and a 12% quarter-over-quarter increase; US stock trading volume rose 20% sequentially, while Hong Kong stock trading volume declined 9% quarter over quarter to HKD $833.5 billion.
• Wealth Management Client Assets-- Achieved HKD $163.2 billion at quarter end, up 104% year over year and 17% quarter over quarter
• IPO Distribution and IR Clients-- Count rose to 517, up 15% year over year, with Futu acting as joint book runner for multiple significant listings and leading the Hai Tin Flavoring and Food IPO in both subscriber count and subscription amount.
• Total Revenue-- Reported total revenue was HKD $5.3 billion, rising 70% year over year from HKD $3.1 billion in Q2 2024, led by brokerage and handling charge income of HKD $2.6 billion (up 87% year over year and 12% sequentially), and interest income of HKD $2.3 billion (up 44% year over year and 11% sequentially).
• Other Income-- Registered HKD $444 million, increasing 176% year over year and 41% quarter over quarter, driven mainly by fund distribution services and currency exchange income.
• Operating Expenses-- Operating expenses rose 21% year over year and 3% quarter over quarter, totaling HKD $1.3 billion; R&D expenses rose 18% year over year to HKD $442 million, attributed to increased AI investments.
• Gross Profit and Margins-- Gross profit grew 82% to HKD $4.6 billion with a gross margin of 87.4% (up from 81.6%), while operating income rose 126% year over year to HKD $3.3 billion and operating margin increased to 63% (up from 47.3% in 2024).
• Net Income-- Grew 113% year over year and 20% sequentially to HKD $2.6 billion, with net income margin expanding to 48.4%, compared to 38.6% in Q2 2024.
• Crypto Trading Expansion-- Launched in most US states in June; asset value of crypto holdings grew over 40% quarter over quarter, with further product pipelines planned for the second half.
• AI Platform Rollout-- Moomoo AI introduced across all international markets, and the AI chatbox adoption rate in Japan reached the highest level among all regions.
• Management Guidance-- Futu has achieved over 50% of its annual new funded accounts target (460,000 out of 800,000) in the first half of 2025 and management expressed confidence in meeting full-year objectives.

Summary

Futu Holdings Limited(NASDAQ:FUTU) delivered marked growth in client acquisition and assets across global markets, while demonstrating substantial progress in international diversification. The business reported significant sequential and year-over-year increases in revenue, operating margin, and net income. Management highlighted advancements in crypto trading, AI deployment, and regional product adaptation as drivers of growth, disclosing further physical expansion and new product rollouts for the second half. The call emphasized leading IPO distribution capabilities, resilient client engagement, and continued investments in technology to enhance competitive positioning.

• Arthur Chen cited that, "asset inflows from overseas markets outside of Greater China are almost exceeding the absolute amount acquired from similar markets in 2024."
• Daniel Yuan stated US options trading in Japan showed "five consecutive quarters of sequential increase," reflecting momentum in international product adoption.
• Management confirmed that Futu is in phase two of its ATP (exchange) license application in Hong Kong and is also exploring license applications in additional markets.
• Arthur Chen explained that the margin financing and securities lending balance was stable at HKD $51.4 billion after an initial deleveraging early in the quarter.
• Daniel Yuan identified that "the penetration or adoption rate of AI chatbox is actually the highest in Japan among all of our international markets," delineating regional engagement differentials for new platform tools.
• Arthur Chen addressed interest income resiliency, noting enhanced income from hard-to-borrow securities lending and increased client cash positions offset declines from lower HEIBOR rates.
• Management plans "more physical stores rolled out in different markets in the second half" to bolster client acquisition and branding globally.

Industry glossary

• HEIBOR: Hong Kong Interbank Offered Rate, the benchmark interest rate at which Hong Kong banks lend unsecured funds to other banks in the interbank market.
• ATP License: Authorization for an Alternative Trading Platform, required in Hong Kong for operating a licensed crypto or digital asset exchange.
• Tokenized Money Market Funds: Digital representations of money market fund shares issued and managed on blockchain networks, enabling fractional ownership and increased transaction efficiency.

Full Conference Call Transcript

Daniel Yuan: As of quarter end, total funded accounts reached approximately 2,900,000, representing a 41% increase year over year and an 8% rise quarter over quarter. We've reached a key milestone in our international expansion, which is at the quarter end, over 50% of funded accounts are from clients outside of Futu Securities Hong Kong. Singapore and the US are our largest international markets, followed by the rapidly expanding Malaysia and Japan, while Australia and Canada show robust growth momentum. This expanding international footprint is a testament to our vision of becoming an influential global financial services platform. During the quarter, we acquired 204,000 new funded accounts, up 32% from a year earlier.

Hong Kong continued to lead all markets to new funded accounts for the third straight quarter. Elevated market volatility from trade tensions in early April, followed by a sharp rebound from trade truces, as well as the wave of high-profile IPOs in May, spurred retail participation. Our US business also delivered robust growth. In the second quarter, we became the official sponsor of the New York Mets, a partnership that will continue to broaden our brand reach in the US and internationally. We also launched cryptocurrency trading in most of the states in June, reinforcing our value proposition as a one-stop trading platform.

In Malaysia, we further localized our offerings by introducing IPO financing services for local listings and the Malaysian stock earnings calendar. In Japan, we partnered with Nasdaq and the Japan Exchange Group to host our inaugural offline investment event, MoveUp Japan, which attracted over 12,000 Tokyo investors to sign up, strengthening our brand recognition in Japan. Building on the successful debut of Futubo AI in Hong Kong, we rolled out Moomoo AI across all international markets, equipping investors worldwide with smarter tools for more efficient investing. Client engagement remains strong across regions. Our funded account quarterly retention rate was once again well above 98%, reflecting the high level of loyalty and satisfaction among our global client base.

By the end of the second quarter, total client assets hit a record HKD $974 billion, up 68% year over year and 17% quarter over quarter. Notably, net asset inflow in 2025 nearly doubled compared to the same period last year. Thanks to robust net asset inflow and favorable mark-to-market appreciation from Hong Kong and US equity, average client assets across all markets registered a sequential increase. In Singapore, average client assets and total client assets rose 1926% quarter over quarter, respectively. The group's margin financing and security lending balance remained stable at HKD $51.4 billion by quarter end.

While clients initially deleveraged under the sharp market downturn in early April, a gradual recovery in risk appetite fostered a rebound in margin financing activity. In the second quarter, total trading volume reached HKD $3.59 trillion, representing a 121% year-over-year and 12% quarter-over-quarter growth. During the quarter, volatility stemming from trade talks drove unprecedented spikes in daily trading volume, while renewed enthusiasm in the cryptocurrency space further accelerated trading momentum. US stock trading volume went up 20% sequentially to HKD $2.7 trillion, led by EV and crypto stocks.

Hong Kong stock trading volume contracted 9% quarter over quarter to HKD $833.5 billion, primarily due to tempered interest in the technology sector, partially offset by higher turnover in new consumption names. Wealth management client assets were HKD $163.2 billion at the quarter end, up 104% year over year and 17% quarter over quarter. In Hong Kong and Singapore, we strengthened our fixed income offerings with Hong Kong dollar and RMB denominated bonds as well as floating rate bonds. In Hong Kong, we launched principal protective structured products, becoming the first online broker to offer retail-facing structured products.

We also became the first and only online brokerage platform in Hong Kong to distribute China AMC Hong Kong's tokenized money market funds, solidifying our position at the forefront of digital asset innovation. As of quarter end, we have 517 IPO distribution and IR clients, up 15% year over year. Hong Kong IPO market gained further momentum from the first quarter with increased deal volume and rising investor participation. During the quarter, we acted as joint book runners through multiple prominent listings. Notably, in the Hai Tin Flavoring and Food IPO, we attracted a record 102,000 subscribers, ranking first among all brokers in both number of subscribers and total subscription amounts.

In 2025, we partnered with six of the 10 largest Hong Kong IPOs by fundraising size and facilitated over HKD $10 billion in subscription amount for 12 IPOs each, underscoring our unparalleled retail distribution capabilities. Next, I'd like to invite our CFO Arthur Chen to discuss our financial performance.

Arthur Chen: Thank you, Leaf Li and Daniel. Please allow me to walk you through our financial performance in the second quarter. All the numbers are in Hong Kong dollars unless otherwise noted. Total revenue was HKD $5.3 billion, up 70% from HKD $3.1 billion in 2024. Brokerage commission and handling charge income was HKD $2.6 billion, an increase of 87% year over year and 12% quarter over quarter. The year over year increase was driven by higher trading volume partially offset by the decline in blended commission rate. We adopt per share and a per contract pricing model for US stocks and US option trading, respectively.

As a result, brokerage income will grow at a slower rate than trading volume where our clients trade higher-priced stocks and options. The quarter-over-quarter increase was mainly driven by the sequential growth in trading volume. Interest income was HKD $2.3 billion, up 44% year over year and 11% quarter over quarter. The year over year increase was driven by high interest income from security borrowing and the lending business, bank deposits, and margin financing. The quarter-over-quarter increase was driven by higher interest income from security borrowing and the lending business as well as higher interest income from bank deposits, partially offset by lower margin financing income due to sequential decline in daily average margin financing balance.

Other income was HKD $444 million, up 176% year over year and 41% quarter over quarter. The year over year and the quarter over quarter increase was primarily attributable to higher fund distribution service income and currency exchange income. Our total cost was HKD $671 million, an increase of 13% from HKD $574 million in 2024. Brokerage commission and handling charge expenses were HKD $161 million, up 84% year over year and 12% quarter over quarter. Both the year over year and the quarter over quarter increase was roughly in line with the movement of our brokerage commission and handling charge income. Interest expenses were HKD $378 million, flat year over year and down 20% quarter over quarter.

The year over year increase in interest expenses associated with our security borrowing and the lending business was offset by the year over year decrease in margin financing interest expenses. The quarter over quarter decrease was mainly due to lower interest expenses associated with our security borrowing and the lending business, as well as lower margin financing interest expenses because of the high borrowing decline. Processing and servicing costs were HKD $133 million, up 21% year over year and down 2% quarter over quarter. The year over year increase was largely due to higher data transmission fees and market information and data fees.

The quarter over quarter decline was mainly driven by lower market information and data fees as well as lower crowd service fees. As a result, total gross profit was HKD $4.6 billion, an increase of 82% from HKD $2.6 billion in 2024. Gross margin was 87.4% as compared to 81.6% in 2024. Operating expenses were up 21% year over year and 3% quarter over quarter to HKD $1.3 billion. R&D expenses were HKD $442 million, up 18% year over year and 14% quarter over quarter. The year over year and the quarter over quarter increase was mainly driven by greater investments in AI capabilities.

Selling and marketing expenses were HKD $429 million, up 27% year over year and down 7% quarter over quarter. The year over year increase was mainly attributable to higher new fund accounts partially offset by lower client acquisition cost per unit. The quarter over quarter decrease was due to sequential decrease in new fund accounts partially offset by higher client acquisition cost per unit. General and administrative expenses were HKD $425 million, up 17% year over year and 2% quarter over quarter. The year over year increase was primarily due to increase in general and administrative headcounts. As a result, income from operation increased by 126% year over year and 25% quarter over quarter to HKD $3.3 billion.

Operating margin increased to 63% from 47.3% in 2024, mostly due to strong top-line growth and operating leverage. Our net income increased by 113% year over year and 20% quarter over quarter to HKD $2.6 billion. Net income margin expanded to 48.4% in the second quarter as compared to 38.6% in the same quarter last year. Our effective tax rate for the quarter was 18.4%. That concludes our prepared remarks. We now like to open the call to questions. Operator, please go ahead. Thank you.

Operator: Thank you. To ask a question, please press star, one, and one on your telephone keypad, and wait for your name to be announced. To withdraw your question, please press star, 11 again. Please stand by as we compile the Q&A roster. Thank you for your patience. Please stand by as we compile the Q&A roster. Our first question comes from the line of Cindy Wang from China Resolutions. Please go ahead.

Cindy Wang: Thanks for taking my call and congrats for the very good results in the second quarter. And I have two questions here. First one is the net asset inflow was very strong in the first half of this year and almost double compared to last year. So what's the reasoning behind it? And do you adjust any marketing campaign to attract asset inflow? And how do you maintain the momentum in the second half? Second question is crypto trading has launched in Hong Kong, Singapore, and the US. Can you give us some color on the number of clients and trading volume in the second quarter or the first half and also July?

And any new product or market will launch in the second half? Thank you.

Arthur Chen: In terms of a very strong asset inflow in the first half, I think the band alongside of the benefit we got from the market itself, given that the US market and the Hong Kong markets performed quite well in the first half, which definitely is a positive implication to the client asset inflows. Internal wise on the product side, we further enrich our product offering, especially in the first half. A lot of new products in terms of wealth management, crypto, and fixed incomes actually provide further enrich our positions as a one-stop investment platform to our users. This will definitely be a positive for our client engagement and also new client asset inflows.

On the marketing branding wise and operational wise, we also put a lot of efforts, especially in the overseas markets such as the US, our collaborations with the Mets in the second quarter bear a very strong fruit in terms of the new client acquisition in the US and also the brand implication further expands to other overseas markets as well. In particular, in the second quarter, all the asset inflows from the overseas markets outside of Greater China, the amount is almost exceeding the absolute amount we acquired from similar markets in 2024, which was very impressive.

I think in the second half, we will continue to enhance our brand acquisitions in terms of, for instance, there will be more physical stores rolled out in different markets in the second half. And also there will be some new product offerings in the wealth management and in the crypto side as well in the second half. For instance, we do have plans to provide crypto transfer in and transfer out functionalities for overseas markets alongside the Hong Kong markets as well. And secondly, specifically for the crypto trading, in terms of the momentum, we saw very strong momentum in terms of crypto asset holding and also the trading velocity.

For instance, the asset value of the cryptos at the second quarter end reached a billion compared with the first half, which recorded over 40% quarter-on-quarter increase. And I do believe that the numbers will continue to see a very strong robust in the third quarter as well. Thanks to further penetrations in our paying clients to engage in crypto trading. In the second half, there will also be some new product pipelines in the crypto trading as well. Besides that, we are also doing some new feasibility studies for certain new markets, which we want to acquire the exchange license as well. Thank you.

Operator: Thank you. Just a moment for our next question, please. Next, we have Chiyao Huang from MS. Please go ahead.

Chiyao Huang: Let me briefly translate two questions basically. One is on crypto. Just wondering what's the mid to long-term strategic views on crypto business in terms of licensing products and also the potential for monetization. And in particular, was wondering what's the strategic upside coming from the crypto exchange license in Hong Kong? And the second question is regarding the Japan market as the company has been in the Japan market for almost two years. Guess what's the understanding about the market? Any change in the understanding, especially regarding the competitive landscape and the major competitive strength of the incumbents? How is Futu Holdings Limited dealing with the competition? What's our key value at the moment?

And what's our targeted clients there versus the incumbents? Thank you.

Arthur Chen: In my personal view, I think our narrative for the whole group in the crypto side can consist of four aspects. I will summarize, I call it the RACE, R-A-C-E. The R means the real-world assets because we have a very strong position in terms of traditional finance. So there will be a lot of bargaining powers or positions in the traditional asset products offerings. For instance, we have a very strong position in the wealth management segments. We have already partnered with over 80 world-class fund manager companies.

For instance, recently we just did our collaborations with China Asset Management in Hong Kong to be the first and exclusive retail distributors for their first tokenized money market funds. Down the road, I think such kind of collaborations in the fund distributions, how to connect traditional finance from web streams, from the offline to on chains would be definitely a very interesting area to explore. Secondly, the A means advanced technologies. I think this is a very important part to set us apart from our partners or from our peers because we always emphasize safety as the first parameter when we do Web three products.

Not to mention, there will be more integrations for our AI capabilities, how to further utilize our AI capabilities in the Web three segment as well. Thirdly, it's the conversions between the traditional finance and the crypto native in terms of the new clients' referrals and also the cross-selling opportunities. For instance, a couple of days ago, we just launched the product offerings for the Solana trading to all Hong Kong retail investors. And we do have plans to provide paper trading for Solana trading in a very short time in order to further engage the newcomers to the crypto universe. The last word E means exchange.

As you said, we are in phase two of the ATP license application in Hong Kong, and we are doing the feasibility studies for more license applications in other markets. Exchange will definitely be a gateway to connect crypto native and also traditional finance, and also in terms of monetization, despite now the monetization more coming from the trading itself. But in the long term, I think VATP will, number one, will save our upstream cost to further enhance our user experience to provide a seamless user experience to our clients. And secondly, our client target will not only be the retail investor for ourselves, we may also expand our offerings to other peers or institutional clients as well.

Thirdly, as you can see a lot of new initiatives mentioned by Hong Kong regulators, for instance, they mentioned Aspire initiative this year, which was quite encouraging. I think there will be a lot of new initial new monetization potentials, such as the derivatives, the staking. So these are all incremental revenues in the long term, will benefit from the regulatory push-up. Thank you. Hi, Chiyao. This is Daniel. And I'll take your second question. I'll take your second question on Japan. I think I'm gonna first share about our understanding of the competitive landscape, market dynamics, and then I'm gonna talk about what we have done in 2Q accordingly.

So in terms of the competitive landscape, as we all know, it's been a pretty steady market structure over the past couple of years. SBI and Rakuten consistently have 80% of the market share in terms of retail investors, and they have both constructed a very robust ecosystem of, you know, one-stop financial services and even beyond financial services and create a lot of very sticky, very sticky touchpoints, with the end clients. That being said, we think Moomoo still has a very unique value proposition, especially for self-directed investors interested in the US markets.

Whether it's our pricing or market data or a trading experience or our social community, these are all very friendly and super competitive for our self-directed investors. So we're thinking there is a real gap in the market for us to fill. And on top of that, what we have come to realize, and also something we've shared before, is that branding is super important in Japan. It takes time to win the trust of the Japan retail investors. So accordingly, we have done lots of branding events, whether it's advertising or hosting events with some of the other very prominent financial institutions or organizations in Japan.

And back to what we have done in the second quarter based on, you know, these understandings. So we continue to optimize our US-related trading capabilities to streamline that investing experience. In the second quarter, we launched US options trading, and we have seen that the penetration of US options as well as the revenue contribution from US options has been coming up steadily month over month. We also started to support the deposit and outflow of US dollars. So before, clients need to exchange that into Japanese yen. So by doing that, we reduced the friction in this currency exchange. We have also seen very high engagement and turnover in the second quarter in Japan.

And in fact, the total trading volume in Japan went up by over 50% quarter over quarter. And we have seen a sequential increase in both the trading turnover of US stocks and Japan stocks. And the average client assets as of quarter end also registered double-digit sequential growth. So we think these are all super encouraging signs and data points. And going forward, we'll continue to optimize our churn experience for both US stocks and Japan stocks. And in the second quarter, we also launched some AI-related capabilities in Japan. And what we have seen this side, the penetration or adoption rate of AI chatbox is actually the highest in Japan among all of our international markets.

And the customer satisfaction rate consistently stayed above 90%, which shows that there are a sizable number of self-directed Japanese investors who are interested in doing their own research and help and use these tools to help them make informed investment decisions. And we want to leverage AI, leverage financial technology to continue to lower the barrier of investing for US stocks. And we think that there is a growing demand for US stocks for us to cater to. And also in terms of brand building, we've also done a fair amount. In the second quarter, we partnered with Nasdaq and the Japan Stock Exchange to host the Move Fest event.

Over 12,000 retail investors in Tokyo signed up, which we think is a quite sizable crowd. And we think that over the past couple of quarters, we've really been able to elevate our brand recognition and trust among the retail investors in Japan. And let me translate for myself.

Arthur Chen: Thank you.

Operator: Just a moment for our next question, please. Next, we have Yu Fan from CICC. Please go ahead.

Yu Fan: Thanks, management, for taking my question. This is from CICC, and I have two questions here. The first one is, can you please give more color on the third quarter regarding the client acquisitions and net asset inflow and also the trading volume? And the second question is about the US market. We see solid growth achieved this year. So would you please share more data and also what's the plan and target for the US market? Thank you.

Daniel Yuan: Well, thank you for these two questions. This is Daniel. I'll take both of these questions. First of all, in terms of the third quarter-to-date trend, based on the run rate, we expect a steady quarter on quarter net new funded accounts. So it's pretty steady compared to the last quarter. We've also seen a positive mark-to-market impact, which coupled with net asset inflow should continue to push total client AUM to grow sequentially. We've also seen very active trading behaviors.

And based on the current run rate, if the market sentiment is able to persist, we think there is a chance that our trading volume could have another quarter on quarter increase on top of the very high base in the second quarter. And in terms of our development in the US market, a couple of data points we could share. Well, first of all, we've really seen the positive flywheel, thanks to the continued product development and the strengthening brand equity. The net new ads in terms of funded accounts in the US continue to contribute very meaningfully to the group.

And in the second quarter, we've also seen the number of options traders, as well as the total number of options contracts traded reached historic high. And in fact, both numbers registered five consecutive quarters of sequential increase. So we think these are super encouraging. And in the second quarter, as we shared earlier, we struck this partnership with the New York Mets, and we've been deeply embedded in this ecosystem of New York Mets. We think this strategic partnership helps us elevate our brand image among the team's tens of millions of fans in the US. But also, we really get our name out there internationally, thanks to the sports team's international influence.

Besides building our brand, we've also iterated on our product. In June, we launched cryptocurrency trading in most states in the US, and we now support over 30 mainstream crypto trading pairs. And we've seen a continuous increase in adoption rate among our US clients. We've also launched Moomoo AI, including AI chatbox, AI-powered stock investment tools, and lots of technical charts and stock-related fundamental data. We also in the future, we plan to launch kind of AI stock screeners to help our investors better sift through the thousands of stocks. So, yeah, lots of product innovations as well. And overall, we are very optimistic about the growth prospects in the US market. And let me translate.

Operator: One moment for our next question, please. Next, we have Charles Zhou from UBS. Please go ahead.

Charles Zhou: So I have two questions. So first, can you maybe give us a little bit more information about the regional mix of the client acquisition in the second quarter? And also, noticed that on a quarter on quarter basis, there's a sequential slowdown for the customer acquisition. Meanwhile, also noticed some news reports about more stringent onboarding of the Mainland Chinese clients in Hong Kong in June. So what will be the potential impact on your client acquisition looking forward? And also any potential change to your full-year guidance of 800,000? Thank you.

Arthur Chen: In terms of the new clients, new paying clients, for the accounts we acquired in the second quarter, Hong Kong and Malaysia collectively account for over 50% of the new client acquisitions in the second quarter. Then the remaining part was mainly from Singapore, the US, and also Japan. In total for the first half of this year, we have already achieved 460,000 new funded accounts, which accounts for over 50% of our annual 800,000 new funded accounts target. We remain very confident to achieve our full-year target nowadays. And there we do not see any meaningful implications for the new regulations in terms of the new client onboarding in Hong Kong.

So far all the new client acquisitions across different markets remain very healthy and robust. So I personally feel very confident to achieve our full-year target. Thank you.

Charles Zhou: Thank you.

Operator: Just a moment for the next question, please. Next, we have Emma Xu from BRFA Securities.

Emma Xu: So the first question is about the interest income. It's actually much stronger than expected. So you mentioned that the gross interest income increased mainly due to the increased income from the stock borrowing and lending business as well as interest income from idle cash. But in the second quarter, HEIBOR dropped a lot. It seems it doesn't impact your interest income a lot. So could you tell us what's the reason behind? But on the other hand, your interest expense declined due to lower cost related to the margin to the stock borrowing and lending business as well as lower HEIBOR. So why is there a divergence between the trend of the gross interest income and interest expense?

And what will be the trend in the third quarter for your net interest income? And the second question is about other income, which grew very strongly in the second quarter, up 42% quarter over quarter and 176% year over year. You mentioned that it is mainly related to your foreign distribution business and FX income business. So could you tell us, do you expect could you tell us what drives the strong growth behind? And do you expect such strong momentum to continue in the future? Thank you.

Arthur Chen: For the first questions regarding the interest income, despite we see a very meaningful stable decline, which may have some certain negative implications to our interest income. But thanks to some policy factors. Number one is given the markets become more volatile and the people, the investor take different opinions, then the interest for the short on the short side has increased a lot in the second quarter. In particular, we got a lot of benefit from some hard-to-borrow stock from the securities lending. Secondly, we see more clients to lock in their profit, given the markets become volatile and that they want to take some money off the tables. Consequently, the cash positions within their portfolios increase a lot.

Therefore, these benefits actually fully offset the negative implications from the yield. And also in the second in the third quarter so far, we see a little bit rebound in the HEIBOR. And at the same time, we also see the cash positions for our clients continue to be maintained at relatively high levels. And also we see a very strong client asset inflow as well. So, you know, compared with the second quarter, I think the interest income in the third quarter, the momentum will continue. Then for the second question regarding the other incomes, you're right, we got some benefits from the FX and also the management fees arising from our wealth management products.

And I strongly believe that these two revenue streams can continue in line with our expansions for our wealth management products. And also if the market continues to be choppy, actually, there will be more consequent demand for the FX exchange. So besides these two normal parts also we increase, we record certain technology service fee incomes from our technology expense, service provided by L Star Bank in the second quarter as well. Thank you.

Emma Xu: Thank you. Very helpful.

Operator: Thank you. Thank you for all the questions. I will now pass back to Daniel for closing remarks. Thank you for all the questions. I will now pass back to Daniel for closing remarks.

Daniel Yuan: That concludes our call today. On behalf of the Futu Holdings Limited management team, I would like to thank you for joining us today. If you have any further questions, please do not hesitate to contact me or any of our investor relations representatives. Thank you, and goodbye.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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