Webull Stock Plunges 20% as House Panel Flags China Control Risk

Webull shares plunged nearly 20% on October 7, 2026, after a bipartisan House panel released a report concluding the trading platform is structurally tied to the Chinese government and poses a national security risk to the US financial system. The drop put BULL on track for its worst single day since April 2025 and extended a monthly decline that has erased roughly 40% of the stock's value. The report, shared exclusively with CNBC, alleges that the brokerage's ownership, technology, and data flows remain exposed to Beijing's laws despite its American branding.

What the House report actually found

The House Select Committee on China found what it called a profound gap between Webull's marketing as an American company and the reality of who controls it. According to the report, the brokerage's ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are all tied in structural ways to the People's Republic of China. The panel said the company's software development, data pipelines, and core engineering operations depend on infrastructure subject to Beijing's laws, which can compel firms to cooperate with the government on data transfers.

The committee also said Webull misrepresented its China footprint.

Webull initially told the panel it had no offices or employees in the PRC and that all firm employees were located in the United States. The report disputes that, finding the company's mainland subsidiary, Hunan Weibu, has grown to 863 employees, equal to 62% of Webull's global workforce. The committee flagged that Webull began holding customer cash directly in October 2025, which it said creates structural exposure of billions of dollars in American capital. The panel said national security concerns around the company have escalated over the past year.

Who really controls Webull?

The report points to a web of China-linked entities rather than a single controlling shareholder.

Webull Corporation is a Cayman Islands-incorporated holding company that holds $24.6 billion in customer assets. Beneath it sit Webull Holdings (US) Inc. And a Singapore-based entity, Webull Technologies Pte. Ltd. Alongside a mainland China subsidiary that supports technology development and platform operations. The business traces its origins to Hunan Fumi Information Technology Co. A Chinese company that originally launched the platform.

At the center of the network is Wang Anquan, a former Alibaba and Xiaomi manager who founded Webull in 2016. The committee's earlier letters identified him as the founder and largest owner of Fumi Technology and the executive director of Hunan Weibu, and noted he serves as CEO of Webull Financial LLC and is registered as a broker in the United States. The panel also cited technology-sharing agreements and shared personnel between Webull, Fumi Technology, and Hunan Weibu.

The committee's December 2024 letter also alleged that Webull enjoys grants from the Chinese Communist Party that flow through Hunan Weibu, intended to support operations abroad. It said the company obscured the fact that it has brokers registered in China and shares employees and technology with both Fumi Technology and Hunan Weibu in advance of its planned public listing.

Why did the stock fall 20% in a day?

The report turned a long-running political question into an immediate regulatory risk.

Siebert Financial analyst Brian Vieten suspended his buy rating and price target on the stock, saying the potential regulatory and operational implications of the findings create a level of uncertainty that cannot reasonably be incorporated into estimates. The committee's chairman, Rep. John Moolenaar of Michigan, said Webull's China-based operations put American investors and their data at risk, and that using technology providers in mainland China and an opaque China-linked ownership structure exposes data to the country's foremost adversary.

A company spokesperson called the report deeply disappointing, saying it contains significant inaccuracies and unsupported conclusions and was published without seeking clarification from Webull. The spokesperson said the US business runs from St. Petersburg, Florida and New York City, that US customer data is stored in the US, and that access to sensitive customer data is controlled by the US. The company said it remains prepared to address questions directly and with the same transparency it brings to the SEC, FINRA, and regulators worldwide.

How did Webull get here?

Webull serves 28 million global users across 18 markets and competes with Robinhood, Charles Schwab, and E-Trade. It went public in 2024 through a SPAC merger, and the committee began pressing the company with information requests that same year. In December 2024, Moolenaar and ranking member Raja Krishnamoorthi wrote to Webull CEO Anthony Denier raising concerns about ties to Fumi Technology and Hunan Weibu, including grants flowing from the Chinese Communist Party through the sister company.

The report lands shortly after a largely friendly summit between President Donald Trump and Chinese leader Xi Jinping in September, with further meetings between the two leaders expected later this year. The findings underscore the growing scrutiny in Washington of Chinese links to companies operating in key areas of the US economy, including financial services. The committee's work reflects a concern that Chinese government access to US financial data and infrastructure could be exploited in the event of further conflict between the two countries.

What protects customer accounts?

Webull is a member of the Securities Investor Protection Corporation, an industry fund that steps in if a US broker fails. SIPC coverage extends up to $500,000 per account, including $250,000 in cash, according to Webull's help page. It does not protect against losses when stock prices fall, a distinction that matters for anyone holding BULL shares through the current volatility.

Cash held in Webull's Cash Management program goes to partner banks, where it falls under Federal Deposit Insurance Corporation protections. The distinction matters: SIPC and FDIC coverage apply if a firm or bank fails, not when markets move against an investor's positions. Customers should understand which protection applies to each dollar they hold on the platform.

What happens next for BULL stock?

The next catalysts are regulatory, not earnings-driven.

The committee's findings could draw follow-up scrutiny from the SEC and FINRA, both of which Webull says it engages with regularly. Any formal action, or a move by the committee to refer findings to regulators, would extend the overhang on the stock. The company has said it remains prepared to address questions directly and with the same transparency it brings to the SEC, FINRA, and regulators worldwide.

For now, the stock is down about 40% over the past month and trading at levels last seen well before the report. The gap between Webull's American branding and the committee's description of its structure is the central dispute, and it will shape how both regulators and 28 million users respond in the weeks ahead.