Webull Shares Down 20% Amid Fears Over Potential China Ties

Overview

Webull Corp (BULL.US) has seen its shares plummet by over 20% following a report from the bipartisan U.S. House Select Committee on China. The report raises significant national security concerns regarding the platform's connections to China, leading to a sharp decline in stock price to approximately $5.80.

Key Findings of the Report

The committee's report highlights several critical issues:

• Webull's ownership structure and technology operations are reportedly linked to China.
• Despite presenting itself as a U.S. business, some of Webull's key technology operations are allegedly managed by an entity based in mainland China.
• Since October 2025, Webull has been directly holding customer cash, which the committee claims increases the risk exposure of U.S. capital.
• Parts of Webull's software and data infrastructure may be subject to Chinese law, which could compel cooperation with state authorities under certain circumstances.

Webull's Response

In response to the report, Webull has disputed several of its conclusions, asserting that the committee did not seek clarification from the company prior to publishing its findings. The company emphasizes that its U.S. operations are conducted from offices in Florida and New York, and that U.S. customer data is stored domestically with controlled access to sensitive information.

Implications for Webull

The report could pose a significant reputational challenge for Webull, particularly as it operates brokerage accounts for U.S. customers. Although the company has not accepted the committee's conclusions, the potential for a more stringent regulatory environment may complicate its efforts to attract and retain customers in the U.S. market.