Webull Stock Falls 20% Over China Ties: Who Really Controls the App?
Webull inventory misplaced 19.1% on Wednesday, closing at $5.89, after a House panel mentioned the buying and selling app’s information “could stay uncovered” to Chinese intelligence legal guidelines. Webull referred to as the report inaccurate.
The dealer holds $24.6 billion for about 28 million customers worldwide. Its founder, Anquan Wang, is a Chinese citizen who controls 79.2% of the votes, Webull’s annual submitting reveals.
What Protects a Webull Customer’s Account
Webull is a member of the Securities Investor Protection Corporation (SIPC), an trade fund that steps in if a US dealer fails.
SIPC covers as much as $500,000 per account, together with $250,000 in money, Webull’s assist page says. It doesn’t cowl losses when inventory costs fall.
Cash in Webull’s Cash Management program goes to companion banks. There, Federal Deposit Insurance Corporation (FDIC) insurance coverage covers as much as $5 million.
The committee’s report doesn’t ban the app, freeze accounts, or nice the firm.
What the House Panel Says Is at Risk
The House Select Committee on China says Webull’s software program, information pipelines, and core engineering depend on methods topic to Chinese legislation. That legislation can pressure corporations at hand information to the state.
Webull’s China unit, Hunan Weibu, employs 863 individuals, or 62% of its employees, its filing reveals. The panel says Webull earlier instructed it that it had no workers in China.
Concern grew after October 2025, when Webull started holding buyer money instantly, the report says.
“Using expertise suppliers in mainland China and an opaque China-linked possession construction, Webull exposes its information to our foremost adversary,” CNBC reported, citing Rep. John Moolenaar, the committee’s chairman.
Webull says the report comprises “important inaccuracies.” It provides that US buyer information is saved in the US, with entry managed there.
The firm additionally mentioned the panel had not contacted it in additional than 20 months.
Lawmakers first raised these hyperlinks in a December 2024 letter. The report lands weeks after a pleasant September summit between President Donald Trump and Chinese chief Xi Jinping.
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