UP Fintech: China's Rising Internet Securities Broker

● The firm's revenues kept rising after 2018; most of its income was from the brokerage business.

● UP Fintech is benefitting from the brokerage industry's change, rising individual investors, and beneficial policies. 

● To further increase its competitiveness, this technology broker is also focusing on increasing globalization, expanding businesses, and investing more in the R&D process. 

● Although UP Fintech's business performance is showing a sharp upward trend these days, it has lagged behind Futu Securities in terms of profitability and sales volumes. 

According to Morgan Stanley Capital International's(MSCI) recent announcement in May 2021, UP Fintech was to be involved in MSCI China All Shares Index, taking effect on May 27, 2021. MSCI Index has strong international influence, which is widely accepted as a global standard for optimizing investment portfolios. In other words, UP Fintech's joining implies the investors' confidence.

UP Fintech has attracted more and more attention since 2019 when it appeared and began to act as a leading broker of China Concept Stocks, active for two consecutive years. Initially, it focused on the brokerage business, with its self-developed trading platform – Tiger Trade. UP Fintech has gradually expanded its businesses and reached 1.4 million customers by the first quarter of 2021.

Turning losses into gains from 2020

Regarding UP Fintech's profitability as a financial service firm, its revenues have presented an upward trend since 2018, with an average YoY growth rate of about 105.32%. More surprisingly, after going public on the Nasdaq in 2019, its net income started becoming positive and generated USD 19.2 million in 2020. 

As UP Fintech's main business, its brokerage business is still occupying the largest part, composed of commission and interest incomes. As a whole, these two types of income occupied about 76.77% of the total revenue over the last three years. Specifically, the commission income average increase rate was the highest, at 96.64% during this period. Although revenues from financial services were relatively small, the firm has been putting more effort into the investment bank business, helping more firms get listed in the US and Hong Kong. 

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Disclaimer: Please consult your own advisor before making any investment decision. 

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