- Webull shares fell about 20% on Oct. 7 after a bipartisan House committee said the brokerage has structural ties to China that could create national security risks for US investors.
Webull Corp. (NASDAQ: BULL) shares fell sharply Wednesday after a bipartisan congressional panel raised concerns about the online brokerage's ownership, technology infrastructure, workforce, and handling of customer information.
The House Select Committee on China said in a report released Wednesday that Webull is connected to the People's Republic of China through several parts of its corporate structure. The committee said those connections create potential risks involving American investor data and customer assets.
The findings were reported by CNBC in its investigation of Webull's China ties. Webull disputed the report. A company spokesperson told CNBC that the committee's conclusions contained significant inaccuracies and unsupported claims and said Webull had not been given an opportunity to clarify the issues before publication.
The congressional findings do not represent a regulatory ban or enforcement action against Webull. They do, however, increase scrutiny of a brokerage that has grown rapidly among retail investors and now has millions of customers and tens of billions of dollars in customer assets.
What Congress Found About Webull's China Ties
The committee said Webull's ownership structure, technical workforce, technology systems, cross-border data arrangements, financing and compliance framework remain connected to China. Some of the underlying information is also contained in Webull's own SEC filings.
Webull reported that its mainland China subsidiary, Hunan Weibu Information Technology Co., Ltd., employed 863 people at the end of 2025, representing about 62% of the company's workforce. The company's annual filing also identifies Hunan Weibu as a technology support and development subsidiary located in mainland China.
Webull's SEC filing says its principal operations are based in the US and that its mainland China activities are limited to research and development and technical support. The company also says personally identifiable information belonging to customers of its US broker-dealer is stored on servers in the United States and cannot be transmitted outside the country or accessed by non-US employees without permission and oversight from US personnel.
The company's 2025 annual report filed with the SEC also shows the extent of founder Anquan Wang's voting control. As of March 31, 2026, Wang, a Chinese citizen, beneficially owned 16.4% of Webull's ordinary shares while holding 79.2% of total voting power.
Webull is incorporated in the Cayman Islands, while its US headquarters are in St. Petersburg, Florida. Its corporate structure also includes subsidiaries in multiple international markets.
The House committee has been examining those connections for several years. In December 2024, lawmakers sent Webull a letter seeking information about its relationship with China and the protection of sensitive US customer data. The committee's concerns therefore predate Wednesday's report.
Webull has previously said that earlier government allegations about its China connections were based largely on outdated or inaccurate information and that it was cooperating with investigators.
Why the Webull Report Matters for BULL Stock
The congressional report arrives as Webull has become a significant player in the US retail brokerage market. The company reported 28.2 million registered users and 5.13 million funded accounts at the end of June 2026. Customer assets reached $28.5 billion, up 79% from a year earlier, according to the company's latest financial results filed with the SEC.
Those figures show why questions surrounding Webull's corporate structure and data controls matter to investors. The issue involves not only the company's future regulatory environment but also the reputation of a platform holding substantial customer assets.
Webull's own disclosures have already identified potential risks from government inquiries related to its connections to China. Its filings also acknowledge that changing laws and regulations targeting companies with Chinese connections could adversely affect its business.
The developments add another layer of risk to an already volatile stock. BULL traded near $5.80 on Wednesday, down roughly 20% from Tuesday's $7.28 close, according to market data. Trading volume surged well above recent averages as investors reacted to the congressional findings.
The decline also highlights the risks investors face when evaluating newer online brokerage stocks. Wealthier Today's guide to opening a taxable brokerage account explains why investors should consider the structure and protections of an investment account rather than focusing only on trading costs or platform features.
Webull has been expanding its business at the same time. Its second-quarter results showed growth in customer assets, funded accounts, and trading activity, while the company has also been developing AI-assisted trading tools and expanding internationally.
That growth puts Webull in direct competition with established brokerage businesses including Robinhood Markets Inc. (NASDAQ: HOOD) and Charles Schwab Corp. (NYSE: SCHW). Recent disclosures involving Robinhood's chief executive and other US-listed companies show how closely investors track developments involving publicly traded retail-investment platforms.
For Webull, the immediate issue is whether Wednesday's congressional findings lead to further scrutiny from regulators or additional action from lawmakers. No such regulatory action was announced as part of the report itself.
For investors, the key facts are clearer: Webull has substantial operations and personnel in mainland China, its founder retains significant voting control, the company says US customer data is stored domestically, and Webull disputes the congressional committee's conclusions.
The dispute is therefore not simply about where Webull is headquartered. It centers on who controls the company, where its technology and personnel operate, how data is handled, and whether those arrangements create risks for US customers and investors.