Webull Corporation (NASDAQ: BULL) shares plunged more than 20% on Wednesday after the U.S. House Select Committee on China released a report stating the online brokerage remains structurally tied to China and poses risks to American investor data and customer assets.
The stock fell as much as roughly 30% in premarket trading, dropping from Tuesday’s $7.28 close toward the low-$5 range, before trimming part of the decline. The move puts Webull on track for one of its sharpest single-day drops since going public, leaving the company with a market capitalization of about $3.1 billion.
The report extends a committee investigation that began in 2024, when lawmakers questioned Webull’s relationships with China-based Fumi Technology and Hunan Weibu and sought details on how U.S. customer data was protected. In December 2024, Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi wrote to Webull that its ownership and operational frameworks raised serious questions about U.S. user data security and the company’s ability to comply with U.S. transparency and fair-trading standards.
In the new findings, lawmakers said Webull’s ownership, technical workforce, technology infrastructure, cross-border data routing, financing and compliance systems remain connected to China. The company is incorporated in the Cayman Islands and reportedly oversees about $24.6 billion in customer assets.
The committee also highlighted Webull’s mainland subsidiary, which handled technology development and platform operations. As of the end of 2025, that unit employed 863 people, representing roughly 62% of Webull’s global workforce.
House China committee Chairman John Moolenaar said on CNBC that “China-based operations put American investors and their data at risk,” arguing that Webull exposes data to Chinese authorities. The report noted that corporations in China are generally required to cooperate with government authorities, including providing access to systems and data.
Webull rejected the committee’s conclusions. A company spokesperson said U.S. operations are run from Florida and New York, and that U.S. customer data is stored and controlled domestically. Webull called the report inaccurate and said some conclusions were unsupported. The report itself does not automatically impose a fine, trading restriction or U.S. ban, meaning the immediate stock decline reflects regulatory uncertainty rather than a completed enforcement action.
The reaction appears company-specific. Robinhood fell only a few percent while Interactive Brokers declined by an even smaller amount, far less than BULL. That divergence suggests investors are pricing in a Webull-specific regulatory discount rather than a broad collapse in online brokerage stocks.
Webull, founded by Wang Anquan in 2016 and headquartered in St. Petersburg, Florida, began operations under Hunan Fumi Information Technology and launched services in 2018 before going public in 2025. The company reports more than 28 million users across 18 markets and offers stocks, bonds, derivatives, crypto and prediction market trading. The controversy comes as Webull and its competitors expand further into crypto and tokenized equity trading, making control of financial infrastructure and customer data increasingly sensitive.
