Webull Corp (NASDAQ:BULL) shares closed Wednesday down more than 11% following a social media post suggesting that lawmakers are pushing for an investigation and potential delisting.
What To Know: Fox Business senior correspondent Charles Gasparino said in an X post Wednesday afternoon that lawmakers are ramping up pressure on the U.S. Securities and Exchange Commission to “investigate and possibly delist” Chinese discount brokerage firm Webull.
"Webull's deep ties to China have potentially severe national security implications and must be investigated by the SEC,” Sen. Tommy Tuberville (R-Ala.) reportedly said, according to Gasparino’s social media post.
The post indicates lawmakers are “aggressively” calling on the SEC to investigate the company.
Webull was founded in 2016 by former Alibaba and Xiaomi manager Wang Anquan, according to CNBC. Anquan reportedly remains the company's global CEO.
Webull went public via a special purpose acquisition company (SPAC) merger with SK Growth Opportunities on Monday. The stock surged out of the gates and has been extremely volatile since.
The company announced the closing of its business combination with SK Growth Opportunities on Wednesday. Webull also rang the opening bell at the Nasdaq.
“This next step in our company’s journey will position us to serve the growing number of experienced, digitally savvy retail investors who demand a more sophisticated retail trading partner that can grow with and serve them over decades,” said Anthony Denier, group president and U.S. CEO of Webull.
“Webull’s advanced trading and investment offerings make us the partner of choice for the next generation of retail investors looking to capitalize on the dynamic world of trading and investment.”
The news comes as trade tensions continue to rise between the U.S. and China. Bloomberg reported this week that Secretary of the Treasury Scott Bessent said all options are “on the table” when asked about potential delistings of Chinese stocks amid trade negotiations.
Chinese broker Futu Holdings Ltd (NASDAQ:FUTU) fell nearly 4% on Wednesday and was continuing to move lower in after-hours trading at last check. Other U.S.-listed Chinese stocks have been trending lower in recent sessions as the U.S.-China trade war continues to escalate. The IShares China Large-Cap ETF (NYSE:FXI) closed Wednesday down 2.29% at $32.42, and the KraneShares CSI China Internet ETF (NYSE:KWEB) closed down more than 3% at $30.17.
Webull shares were bouncing back in after-hours trading at the time of writing, up 5.96% at $38.38, according to Benzinga Pro.
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