US Lawmakers Raise National Security Concerns Over China Links of Webull

Republican Chairman John Moolenaar and Democratic Ranking Member Ro Khanna led the investigation. The committee said Webull's ownership structure, technology workforce, infrastructure, cross-border data arrangements and financing had significant links to China.

It also alleged that Webull's Chinese subsidiary had received government subsidies and financial incentives connected to political requirements.

Moolenaar said Webull's China-based operations created risks for American investors and their data, pointing to Chinese national security laws that can require companies and individuals to cooperate with government authorities.

Webull rejected the committee's findings, saying the report contained significant inaccuracies and conclusions that were not supported by evidence. A company spokesperson said its US operations were managed from its headquarters in St. Petersburg, Florida, and an office in New York City.

The company also maintained that US customer information was stored within the United States and that access to sensitive data was controlled domestically.

The congressional report, titled *Free Trades, Hidden Ties: Exposing Webull's China Links*, outlined six broad areas of concern. These included potential risks to investor data, alleged inaccuracies in disclosures about employees and oversight, China-linked corporate control, regulatory compliance issues, Chinese government financial support and concerns related to clearing and custody arrangements.

The committee also alleged that Webull had provided misleading information about the location of certain employees and the way their work was supervised.

According to the investigation, Webull's mainland Chinese subsidiary, Hunan Weibu, employed 863 people, representing about 62 per cent of the company's global workforce.

The lawmakers questioned whether Webull's technology operations could also fall under Chinese laws requiring cooperation with state authorities.

Khanna said financial institutions handling Americans' savings and personal information should provide greater transparency about their operations and relationships with foreign entities. He called on Webull to be more forthcoming about its connections to China.

The committee recommended five policy measures, including increased oversight of brokerages controlled by foreign interests and stronger safeguards for Americans' financial information.

Among its proposals were legislation requiring inspections of broker-dealers with overseas operations and expanding the jurisdiction of the Committee on Foreign Investment in the United States. The lawmakers also called for enhanced protections for brokerage records and tighter oversight of clearing and custody arrangements where potential conflicts of interest exist.

Webull shares declined sharply after the findings were released, amid investor concerns about possible regulatory repercussions. The report itself, however, did not impose any sanctions, trading restrictions or penalties on the company.

Webull operates an online investment platform that provides retail investors access to stocks, exchange-traded funds, options and other financial products and competes with established US brokerage companies.