Webull Corporation (NASDAQ:BULL) shares are trading lower Wednesday following a congressional report that found the brokerage’s China ties create a national security risk.
- Webull stock is taking a hit today. What’s behind BULL decline?
House Panel Says Webull Is Tied “in Structural Ways” to China
According to CNBC, the House Select Committee on China released a report finding a profound gap between Webull’s marketing as an American company and who actually controls the St. Petersburg, Florida-based firm. The committee said Webull’s ownership, technical workforce, technology infrastructure, cross-border data routing, corporate financing and compliance frameworks are all tied to the People’s Republic of China. It said the company’s software development, data pipelines and core engineering depend on infrastructure subject to Beijing’s laws, which can compel firms to transfer data and cooperate with the government.
The panel said its concerns have escalated since October 2025, when Webull began carrying customer cash directly. It alleges that creates a “structural exposure of billions of dollars in American capital.” The report found Webull, a Cayman Islands-incorporated holding company, holds $24.6 billion in customer assets. It also says a mainland China-based subsidiary supports the company’s technology development and platform operations, and that the business traces its origins to a Chinese company, Hunan Fumi Information Technology.
Committee Alleges Webull Misstated Its China Headcount
The committee also alleges Webull misrepresented the number of its China-based employees. It said the company initially told the panel it did not have any offices or employees based in the PRC. According to the report, Webull’s mainland subsidiary, Hunan Weibu, has grown to 863 employees, or 62% of the company’s global workforce.
“Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary,” said Rep. John Moolenaar, R-Mich., who chairs the committee.
Why the Report Is Weighing on Webull
The report has sparked concerns about the security of U.S. customer data and billions of dollars in American assets held through the platform.
Webull Shares Crash
BULL Price Action: At the time of writing, Webull shares are trading 26.39% lower at $5.28, according to data from Benzinga Pro.
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