Futu Holdings Limited Price & Performance (FUTU)

Including its annual report. With that, I will now turn the call over to Leif. Leaf will make his comments in Chinese and I will translate. Thank you all for joining our earnings call today. Client acquisitions accelerated across all markets mid and eventful quarter, We exceeded our full year guidance by a wide margin adding 215,000 paying clients in the fourth quarter alone. As of year end, total paying clients was over $2,400,000 up 41% year over year. Year to date, we've observed robust paying client growth across markets and are guiding for 800,000 menu paying clients in 2025. [indiscernible] In the fourth quarter, Hong Kong market was the top growth driver for U. P. A. Clients as we implemented targeted marketing initiatives to capitalize on the momentum of different asset classes. In Singapore, we maintained quality growth with more paying clients added that are also with higher average assets. We further solidified our position as a leading one stop investment platform and recorded another quarter of strong paying client growth with our increasingly localized product experience and strengthening brand equity. In Japan, new pain clients grew double digit quarter over quarter, as our superior U. S. Stock trading experience gained traction amid a bullish U. S. Market backdrop.

In 2024, we delivered two zero nine iterations of our mobile app in desktop clients, and added 7,762 new features. Up 3732% year over year respectively. Product velocity remained high in the fourth quarter, In Japan, we launched U. S. Margin trading, with an increasing adoption rate and improving throughout the quarter. In The U. S, we unveiled Option Strategy Builder on our desktop version to better help traders navigate various options trading strategies. As we continue to refine our options trading products, in the fourth quarter, number of options traders in The U. S. More than doubled year over year, while the number of options contracts traded more than tripled compared to the year ago quarter. In Hong Kong and Singapore, we established a bond trading with us to help our clients execute large and complex fund orders. For our clients in Australia and Canada, we launched recurring investment plans for local stocks. Although the pullback of China equity for the second half of the quarter weighed on the valuation of our client's assets, It was more than offset by stellar net asset inflow across markets. Total client assets were HKD343 billion, up 43% year over year and 7% quarter over quarter.

Overseas markets recorded the highest quarterly net asset inflow. Almost equivalent to the full year 2023 inflow. Total client assets in Singapore grew by 19% quarter over quarter marking the tenth consecutive quarter of sequential growth. Thanks to robust net asset inflow into U. S. Equities and money market funds. U. S, Canada and Australia markets also win a sequential growth in average finance of for four consecutive quarters. As our clients took on more leverage positions, margin financing and securities lending balance increased by 25% sequentially to a record $51,000,000,000 Total trading volume jumped by 202% year over year and 52% quarter over quarter to HKD2.89 trillion. In the fourth quarter, our clients diversify their investing to include more crypto and AI names. As a result, U. S. Stock trading volume grew by 36% sequentially a historic high of HKD2.08 trillion dollars Notably, several AI focused companies previously less familiar to our clients emerged as top trading U. S. Stocks in 2024 driven by the remarkable outperformance and the rising narrative around AI's transformative potential. Hong Kong stock trading volume grew exponentially by 117% sequentially to HK755 billion dollars The renewed enthusiasm in Hong Kong equity starting from September led to a substantial rebound in trading velocity.

Clients show a meaningful pickup of interest in many technology names as well as leverage and inverse ETFs. [indiscernible] Total client assets and wealth management increased 93% year over year and 14% quarter over quarter HK111 billion dollars Money market funds continue to hold strong appeal for our plans in even with moderately lower yields in the fourth quarter. And drove the bulk of the sequential growth in Wealth Management AUM. In Hong Kong and Singapore, we expanded our structured product offerings to better address the investment needs of our high net worth clients. [indiscernible] Total client assets and wealth management accounted for 15% of total client assets. Up from 12% in the same quarter last year. We had four eighty two IPO distribution in IR clients. Up 16% year over year. In 2024, we underwrote 40 Hong Kong IPOs, ranking first among all brokers for the third consecutive year according to Wind. The new digital IPO settlement platform, FINE, introduced by the Hong Kong Stock Exchange, eliminates multi account subscriptions, shortens the settlement period reduces the amount of lockup capital needed and lowers funding costs through the new pre funding model. We believe that this new system improves the retail IPOs drops more retail participation, and favors market consolidation.

We've swiftly adapted our subscription process based on a new framework and achieved notable gains in market share. Next, I'd like to invite our CFO, Arthur, to discuss our financial performance Thanks, Li Bin and Daniel. Please allow me to walk you through our financial performance in the fourth quarter. All the numbers are in Hong Kong dollar unless otherwise noted. Total revenue was RMB4.4 billion, up 87% from RMB2.4 billion in the fourth quarter of twenty twenty three. We conclude a strong year with full year revenue growing to RMB13.6 billion up 36% year over year. [indiscernible] Brokerage commission handling charge income was RMB2.1 billion, an increase of 128% year over year and RMB35 percent Q over Q. The year over year Q over Q increase was both driven by higher trading volume partially offset by the decline in blended commission rate. We adopt per contract per share pricing model for U. S. Options and The U. S. Stock trading respectively. As a result, brokerage income will grow at a slow rate than trading volume, where our clients trade high priced stocks and options.

Interest income was billion dollars up 52% year over year and 19% Q over Q Both were driven by higher interest income from our security borrowing and the lending business [indiscernible] from banking deposits. Other income was RMB353 million, up 157% year over year 69% Q over Q, The year over year Q over Q increase was both primary attribute to higher funded distribution income and the currency exchange income. Our total cost was $776,000,000, an increase of 79% from RMB334 million in the fourth quarter of twenty twenty three. [indiscernible] Brokerage commission and handling charge expenses $112,000,000 up 90% year over year and 38% Q over Q. The Q over Q increase was roughly in line with the movements of our brokerage commission and handling charge income. Interest expenses RMB513 million, up 19% year over year and 24% Q over Q. The year over year increase was driven by higher interest expenses associated with our security borrowing and the lending business, The Q over Q increase was mainly due to higher margin financing interest expenses as a result of higher funding costs for Hong Kong dollars. Processing and the servicing costs were $151,000,000 up 45% year over year and 16% Q over Q. The increase was largely due to higher market information and the data fee for new products as well higher system usage fees.

As a result, total gross profit was 3,700,000,000.0, an increase of 89% from RMB1.9 billion in the fourth quarter of twenty twenty three. Gross margin was 82.5% as compared to 81.7% in the fourth quarter of twenty twenty three. [indiscernible] Operating expenses were 75 was 57% year over year and 33% Q over Q to 1,400,000,000.0. R and D expenses were RMB393 million up 10% year over year and a 4% year over year This increase was partially due to cost related to organizational in the fourth quarter of twenty twenty four. Selling and marketing expenses were $464,000,000 up 154% year over year 48% year over year. The year over year increase was due to a triple digit year over year increase in net new paying clients partially offset by lower client acquisition costs. The Q4Q increase was in line with the growth of our new paying clients. General and administrative expenses was 70,000,000, up 55% year over year and 51% Q over Q. The year over year increase was primarily due to increase in the general administrative headcount and the Q over Q increase was mainly due to higher bonus accrued for general and administrative personnel and to a less extent costs related to organizational restructuring.

As a result, income from operations increased 117% year over year and 28% Q over Q to 2,200,000,000.0. Operating margin increased to 50% from 43.1% in the fourth quarter of twenty twenty three mostly due to strong top line growth and operating leverage. Our net income increased by 113% year over year and 42% Q over Q to RMB1.9 billion. Dollars Net income margin expanded to 42.2% in the fourth quarter as compared to 36.9% in the same quarter last year. Our effective tax rate for the quarter was 16.1%, That concludes our prepared remarks. We'd now like to open the call to questions. Operator, please go ahead.

Thank you. We will now take the first question from the line of Emma Xu from Bank of America Securities. Please go ahead. [indiscernible] I have two questions. The first question is about the new paying clients. You guided 800,000 new paying clients for this year around 100,000 more than last year. But last year, you have two new markets, Malaysia and Japanese. Japan. But this year, previously, you guided that you don't have new market plans. So just wondering why you are able to guide such a strong new paying client target?

And the second question is about the CAC client acquisition cost. It increased moderately in the fourth quarter last year despite the very active market in in the active market in general CAC should be lower, thanks to the natural flows. So just wondering, is it due to the change of the market, the mix of the new paying client market or due to the change of the channels that lead to the increase of the CAC? And what's your target of CAC for this year?

Thanks, Emma. I will take these two questions. In terms of your first questions regarding our new guidance. 2025, This 80,000 new paying clients does not include any new markets we will enter in or not in 2025. So this is [indiscernible] The reason for this very strong guidance is number one is we think this two new markets such as Malaysia and Japan, which we're ending to last year, still provide a very meaningful robust growth outlook in 2025. Not to mention [indiscernible] relatively mature markets such as Singapore and Hong Kong, we still see very good upside in client acquisitions. Thanks to partially due to the Chinese SRE rating what we witnessed from early days of this year. And in terms of the second question regarding [indiscernible] we roughly target 2,500 to 3,000 HKD 3,000 CAC for this year. From the end of last year and going forward, we will spend more monies in some brand equities in order to enhance our long term user loyalty in our platform. Thank you.

Thank you. Very clear.

Thank you. We will now take the next question from the line of Cindy Wang from China Renaissance. Please go ahead.

Thanks for taking my question and congrats for our very strong result in Q4. And I have two questions here. First question, recently, we noticed that U. S. And the Hong Kong market overall market trading volume has very strong quarter over quarter performance in first quarter quarter to date. So can management give us a little bit color based on current run rate What's the trading volume, trading velocity, net asset inflow and the margin financing, securities and lending guidance. The second question is related to the new product pipeline. So we know like Futu has a lot of like product pipeline every year. So can you give us roughly pipeline on the equity derivatives and crypto products? Thank you.

I think Yihao So first of all, I'll give you some color on the quarter to date operating matrices. We've seen this year, there was a lot of trading opportunities for both the Hong Kong and U. S. Stock market. Retail investors continue to be very highly engaged And year to date, based on the current run rate, we forecast higher Nenyu paying clients as compared to the fourth quarter last year. We've also seen higher net asset inflow which coupled with the appreciation of China equity led to a very meaningful sequential increase in total client assets. Based on this current run rate, we also forecast our total trading volume to further increase on top of the high base last quarter. We've seen that the clients remain highly engaged and very high risk tolerance year to date. And regarding our product plan, so this year for all of our overseas markets, we have a very rich product pipeline. In order to satisfy the client demands different risk rewards. In Japan, for example, we'll continue to catch up with our product trading capabilities around Japanese equities and at the same time continue to optimize [indiscernible] and extend our leadership in U. S. Trading In Malaysia, we also will have a number of private innovations and iterations based on local clients' needs.

In The U. S, we plan to grow out crypto trading in the next couple of months. And in terms of wealth management, we we plan to continue to expand our wealth management offerings including offering more structured notes for our retail and high network clients.

Thank you.

Thank you.

Very clear. Thank you. We will now take the next question from the line of Chiyou Huang from Morgan Stanley. Please go ahead.

So basically two questions. One is [indiscernible] on what basically what areas of the business that management think have the most potential to integrate AI models like DeepSeq and what kind of efficiency gains and how should that us strengthen the product offerings and services? And the second question is on crypto offerings. And just wondering is there any update on the licensing process or what can be done to accelerate the client penetration or investor education and the marketing site on the crypto business in Hong Kong and Singapore. So and then what will be most differentiated offering from Futu crypto office compared to peers?

Thank you.

Thank you, Ji Yong. Li Vu will answer your first question and my colleagues Robin will answer your second question regarding crypto. Thank you.

So in the past couple of years, we've made a number of explorations in AI based on different usage scenarios. We've incorporated AI capabilities both for internal operations and for client facing capabilities And we are also doing vocal deployment of DeepSeq. So internally, we've found that AI help us to meaningfully lift our efficiency in terms of the market use and data generation, filtering of content in our social community and the designing and the graphics. It's And in terms of client facing user experiences, so in Hong Kong, we've launched a new synthesis function for individual stocks. Twice a day in the morning and at night. We also have an automatic interpretation of the corporate announcements and analysis of the financial results. These are all based on the AI model. Which we believe help our clients to quickly understand market dynamics and reduce the time needed for them to make investment decisions. And we are also doing a lot of studying and research in terms of how better to incorporate AI to empower more applications for retail investors. And we believe that if we use AI to help with decision making, that puts a much higher requirement in terms of the timeliness and the accuracy of the information generated.

So the unpredictable quality of the responses will actually increase the investment thresholds for the retail investors and prolong the time needed for them to make effective investment decisions, thereby lowering their investment experiences. And we hope to make a lot of thorough preparations and to make sure that the information we generate through AI in different usage scenarios are highly accurate. And at the same time, we need to do very prudent assessment and very comprehensive testing to make sure that we strike the right balance between user experience compliance and technological innovation, so as to maximize our investors' benefits and also to protect their needs. Thank you.

Thank you. We will now take the next question from the line of Charles Tsue from UBS. Please go ahead.

So I've got two questions. The first one we understand the company plans to develop wealth management business in both Hong Kong and also Singapore. So what is your expectation for the total addressable market size? And also how does the food to differentiate from its competitors in other mean, say, for example, private banks or insurance companies.

And can you maybe talk about your competitive advantage from product distribution and etcetera? And do you think the business will be scalable My second question is, following the strong trading volume in Q4 last year, U. S. Stocks corrected sharply over the past months. How did it impact your trading volume in Q1? And if the sales momentum continue in The U. S. That persist, the client AUM will decline. Will this also affect overall recruiting volume in the rest of this year in 2025? Thank you.

In terms of the trading volumes, despite we saw some setback in The U. S. Stock markets in the first quarter so far. But actually, the market setbacks create more volatilities, which inspire more clients trading to bottom fish the markets in The U. S. In The U. S. Stock market. Then in the meantime, the trading volumes in Hong Kong made a huge spike due to China assets rerating and a lot of [indiscernible] So on a collective basis, we Daniel mentioned before, in the first quarter so far, we see the overall trading volumes remain very robust.

Now I hand over to Robin.

So I'll first translate about crypto updates and then Robin also touched on wealth management. So in the fourth quarter, the crypto market had a huge boom, which lifted our clients trading interest and sentiment. We've seen that in November and December, the crypto trading volume on our platform grew exponentially, which is almost five times of what we saw in October. And our daily trading volume surpassed US35 million dollars and we've also seen a similar growth rate in terms of number of crypto triggers on our platform. So in the first quarter, we've seen that the crypto prices experienced some pullback. At the same time, there's a lot of trading opportunities in the Hong Kong and U. S. Stock market. So we've seen a subsiding interest in crypto trading on our platform, but the trading volume and the crypto traders are still at a relatively high level. Right now in Hong Kong, we offer four trading pairs to our retail investors. And we offer six trading pairs in Singapore. And in the future, we plan a lot more kind of mainstream trading pairs. And at the same time, I think we'll enhance our management of the capital efficiency and also liquidity and the security and also kind of lower the costs of of our clients moving funds in and out, which we believe will help with client conversion and with further penetration of crypto trading.

We believe in Hong Kong and Singapore, most of their retail investors are still in the very early stage of building up awareness of this asset class. And we think there's a lot of further room for penetration. And we hope to leverage more investor education materials a seamless fund deposit experience to assuage our clients' concerns towards this relatively new asset class And as the regulatory framework gets more clear in these two markets, Futu has one of the earliest retail players in the space will enjoy the early mover advantage in building up our user mindshare, especially in terms of compliant operations. Which will help us in advantage as the crypto asset class became becomes more mainstream in these two markets. And as we mentioned earlier, we are also planning to roll out crypto trading in U. S. This year, and we are expecting a higher penetration of crypto among our U. S. Client base compared to what we have seen in Hong Kong and Singapore so far. And as regards to our VAPP license, so we got a conditional approval from SSC and we are working on our product development. We don't have a very specific timeline for our official launch yet, and we look forward to giving more color down the road.

And then about the wealth management, so this year we've entered into a rate cut cycle but we still believe money market funds yield will continue to be attractive to our clients in the foreseeable future. And at the same time, we have provided very seamless automatic subscription and redemption functions for our money market funds which really maximize our clients' capital efficiency, so as to help them to seize the trading opportunities in the market and at the same time earn yields on their higher cash.

And we typically we expect an outperformance fixed income related assets during a rate cut cycle. And we have built a comprehensive set of products in this space in Hong Kong and Singapore which we believe will help our clients navigate these different investment cycles. To achieve long term capital appreciation. And at the same time, as mentioned earlier, we intend to further enrich our wealth management product offerings, including more structured notes, for both our retail and tied with clients and we are optimistic about the AUM growth through our wealth management. And to add some additional color to what Robin just said about wealth management, I think there are some of our key competitive advantages in this space is number one, we really offer our clients a seamless experience to navigate across different asset classes on our platform, whether it's equities or wealth management or crypto, etcetera. So I think that is one of our key competitive advantage. We don't just lead our competitors in just one specific asset class but it is a very seamless one stop experience for clients to very easily switch between asset classes and to cross navigate different cycles. Number two, I think we adopt a platform model, which is a key advantage for our [indiscernible] For example, like in terms of structured products, we onboard structured offerings from a number of different private banks and our clients can compare these returns and the performances and pick the best asset class on our platform.

As opposed to maybe some other institutions will prefer to sell to their clients their own proprietary products. This platform model really gives our clients access to a variety of different assets. And us as an intermediary is very new and just make sure that we will be able to provide our clients with the most attractive investment opportunity. Thank you.

Thank you. We will now take the next question. From the line of Yu Fan from CICC. Please go ahead.

This is Yong Yongsan from CICC and the two questions, the first one is regarding the AUM breakdown in 4Q. So how much is from the client net asset inflow and how much from market to market impact? And what's the regional breakdown of the client assets? And the second question, we see the active Hong Kong IPO subscription recently. So what's the impact on our income statement? And what's the contribution to our new paying clients and the net asset inflow?

In terms of the NSS inflow, breakdowns in the fourth quarter, we mentioned before, the market to market implications in the fourth quarter actually was a negative number. So the client asset inflow the number is much larger than the movement of the balance between two quarters. And among them, 24% of the asset inflow actually come from Great China areas, This number one year ago was just 20%. We see it is a very good indicator for our overseas markets continues engagement for clients. Then the second question the direct revenues from Hong Kong IPO is just contributes low single digit of our total revenue. Given that we are further diversifying our revenue stream in the past four to five years. And also due to the new mechanisms in Hong Kong such as Fenny, the settlement duration, the leverage financing duration were both shortened So on one side, it is a negative to all the brokers, direct commission and the interest income. But on the other hand, it further engaged the clients to the markets to enhance the market liquidity and there's more interest in terms of the retail clients in participate in this market. So a net net basis, it is still very positive to our business.

Thank you.

Thank you. We will now take the next question. From the line of JPMorgan. Please Peter Tsang. Please go ahead from JPMorgan.

Menu, thanks for giving me the opportunity to ask questions. It's This is Peter Zhang from JPMorgan. And I have two question. First is about the operating expense and we noticed that from sequential perspective, the G and A expense increased by over 50% Q on Q in fourth quarter, while R and D expense only moderately pick up by 4%. We wish to understand what's the drivers behind this diverging chain for the two different operating expense in fourth quarter. And what will be your outlook for 2025 in terms of your second growth in and your R and D and GM A expense growth into 2025. And my second question is about other income. We noticed that other income grow by 69% Q on Q to a record quarterly high in fourth quarter. We wish to understand what's the drivers behind this increase and what's the outlook into 2025? Thank you.

For two questions, number one is regarding the G and A Q on Q expenses increase mainly due to three reasons. Number one is our year end bonus equipment, especially for the overseas markets. Management. Secondly, it's due to some one off professional expenses relating to some new license applications and the new market feasibility studies. The third delay is due to some one off organizational restructuring. Looking forward to 2025 we expect the number of our headcount will continue to increase in in low to middle single digit versus the situations in 2024. Then for second question regarding the breakdown of the key drivers of the other income, mainly comes from two facts. Number one is revenues derived from the wealth management. Including the funds distribution and also more fees from the structured products like structure nodes and the T bills etcetera. The other is relating to foreign FX exchange fees. This is partially due to very divergent market performance between The U. S. Market [indiscernible] the Hong Kong market in fourth quarter. So we saw more clients is trying to switch their assets between these two markets. Thank you.

Thank you. We will now take the next question. From the line of Zoe Tsong from Jefferies. Please go ahead. Thanks management for taking my questions and congratulations on your strong results. And I have two questions. First, we have seen the blended trading commission rate decline both year over year and sequentially in Q4. However, the trading volume contribution from H2 actually increased in Q4. So excluding the structural impact what's the reason for the commission rate decline?

And my second question is about capital region. We ever had RMB500 million share buyback program, which is effective during December. May I ask how much is the remaining quarter and what's your capital return this year? Also do we have any consideration of regular dividend? Thank you. [indiscernible] In terms of the blended commission rate, the Q over Q decrease was mainly due to the product mix change. In the fourth quarter, more clients trading these high value nominal values U. S. Stocks and also high nominal values U. S. Options. Which lent which made the blender take rates have some Q on Q decrease. And in the first quarter so far, we saw our take rates remains very stable. Then the second question regarding the shareholder returns. So far, we have not utilized our share repurchase program, which will be expire at the end of twenty twenty five, we still think these new market, new business lines will still fast growth stage. There will be a huge room for us to deploy the capital for these new business and the new markets which we think in the long run will enhance our competitive edge in the markets and also our profitability.

Profitability. Having said that, as we mentioned in our third quarters, do concur part of our shareholders is very focusing or care about cash dividends. And we will revisit and evaluate our our dividend payout policies when twenty twenty five year full year complete and we'll consider the relative measures to provide a reward to our long term shareholders. Thank you.

That's very clear. Thank you. Thank you. We will now take the next question. From the line of Hanh Yang Wang from 86Research. Please go ahead.

Thanks management for taking my questions.

This is Haina from 86Research.

Have one simple question regarding the derivatives trading. So what is the approximately the percentage of derivatives in the total trading volume in the fourth quarter? And considering the increased market volatility recently do you see an increase in the proportion of developers trading on your platform? In Q1. Thank you.

In terms of the derivative commissions, it's roughly accounts for one third of our total trading commissions in the fourth quarters. Slightly down to our historical high in the past And in the fourth quarter so far, we do not witness any material change for this ratio.

Thank you.

Thank you. We will now take the next question. From the line of Alan Chen from Citi. Please go ahead.

Thanks management for giving me the chance to ask the question.

This is Alan from Citibank. Could management give us some breakdown of the interest income in terms of either cash interest income versus margin financing, security lending income? And if management could share what's the prevailing interest rate on [indiscernible] client's idle cash, what was the idle cash yield in 4Q 'twenty four? And since September, we have already seen the Fed cutting the factory by 100 basis points. I'm wondering how much of that 100 basis points FedRICA has already been reflected into the decline by the cash interest rate. Thanks.

In terms of the breakdown of the income, roughly 40% to 45% interest income was derived from the idle cash deposits. And the remaining belongs to the margin financing and the security lending, etcetera. And the impasse for the rate cut, if we use the fourth quarter end client assets numbers. To make our projections, every 25 basis cut by the Fed rate. Our pretax profit monthly pretax profit will be negatively impact by 8% to 10,000,000. Thank you.

Thank you. Will now take the last question from the line of Sihan Wang from Goldman Sachs. Please go ahead. My first question is, do we have a regional breakdown of the new pay paying client growth in 4Q? And for 2025, what proportion of 800,000 Yupeng client is expected to be from new markets and what proportion from mature markets? And my second question is, do we have a guidance for ARAM per client growth in 2025? Will it be diluted as paying client growth is very fast and majority of them may be from new markets. And in the long run, what levels do we expect AUM per client to reach in each region? Thank you.

In terms of the breakdown of the new client acquisition, geographic locations, for these mature markets like Hong Kong and Singapore's which on a collective basis contribute roughly 40% to 45% of our total new paying clients acquired in fourth quarter. The remaining countries in Asia alongside Australia contribute roughly 40% as well. Then the remaining 20% belongs to the North America. Thank you.

To market impact. Let me briefly translate. So of all, I just want to comment on net asset inflow. And 2024, we saw very meaningful step up in net asset inflow in comparison to 2023. And we foresee a similar very robust net asset inflow 2025 as well. And as you understand, like average client assets are, first of all, impacted by our new client mix between different markets. And also impacted by mark to market trends. And both of these factors are less within our control than net asset inflows It's very hard to predict how average client assets is going to trend for [indiscernible] And in terms of average client assets in different markets, well, some markets will structurally have high end average Fianna For example, Hong Kong and Singapore like these clients have higher investable income and therefore will have more capital that they can deploy on FU2's platform. But at the same time, what we found super encouraging is that in the fourth quarter, all of our markets experienced very meaningful Q1 Q growth in our retwined assets. We expect this trend to continue because as we onboard more products, there's a lot of cross selling out on onto our platform.

At the same time, as our product capabilities get enhanced, and as our rent equity gets enhanced, we're able to attract more high quality clients including high net worth clients in many of these markets. Thank you.

Thank you. Would now like to turn the conference back to Daniel Jean for closing remarks.

Well, that concludes our earnings call. Behalf of the Futu 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.

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