From Startup Fortune · · 1m 40s
Webull Stock Drops After Congress Flags China Ties
Congress report reveals Webull's deep China links, triggering 19.1% stock plunge.
In brief
Congress report reveals Webull's deep China links, triggering 19.1% stock plunge. Webull stock fell 19.1% after a House committee report found 62% of its workforce in a mainland China subsidiary. Originally reported by Startup Fortune.
House committee report
A House committee says Webull markets itself as an American brokerage while routing much of its engineering through a mainland China subsidiary.
Stock drops 19.1%
Investors who hold $28.5 billion in customer assets on the app just found out what that means for them.
Report released October 7
On October 7, the House Select Committee on China released a report accusing Webull of hiding how much of the company actually runs out of China.
Stock drops 19.1%
The stock dropped 19.1% in a single session, closing at $5.89.
Subsidiary employs 863 people
The report centers on Hunan Weibu, a mainland China subsidiary the committee says employs 863 people.
62% of workforce in China
That subsidiary handles core technology development and platform operations, not just back-office support.
Committee flags structural ties
The committee also flagged cross-border data routing, Webull's financing structure, and its compliance systems as 'tied in structural ways to the People's Republic of China'.
Timing matters
The committee says its concerns 'escalated' after October 2025, when Webull began carrying customer cash directly rather than leaving those funds at Apex Clearing.
Customer assets reach $28.5B
Customer assets reached $28.5 billion by the end of June, up 79% year over year.
Webull stock rebounds
It has since rebounded to $6.31 as of October 13 but remains sharply lower than it was a month ago.
The one thing
Webull stock fell 19.1% after a House committee report found 62% of its workforce in a mainland China subsidiary.
