Webull’s 29% stock plunge follows a deeper question: how much of its U.S. brokerage depends on China-linked people, technology and infrastructure

Webull stock dropped as much as 29% on Wednesday after a U.S. House committee reported that the online brokerage has deep structural ties to China that create national security risks.

Shares of Webull Corporation (NASDAQ:BULL) fell to $5.15 in morning trading. The sharp decline followed the release of findings by the House Select Committee on China, which alleged that Webull's operations, software, and data pipelines depend on infrastructure subject to Beijing's authority.

Rival trading platforms experienced much smaller declines. Robinhood Markets fell 3% to $108.93, while Interactive Brokers slipped 2% to $88.77.


The House Select Committee on the Chinese Communist Party said Webull remains connected to China across several parts of its business.

The report points to ownership, technology development, staffing, data routing, financing and compliance. The committee's argument is that these links extend into the infrastructure Webull uses to run its brokerage platform.

Webull was founded in 2016 by Anquan Wang, who previously worked at Alibaba and Xiaomi. Webull Corporation is incorporated in the Cayman Islands, while its U.S. operations are based in St. Petersburg, Florida.

Why Webull stock dropped 29% and what lawmakers found inside its China-linked business?

Webull's 2025 filing provides one of the clearest numbers behind the committee's concerns.

Hunan Weibu Information Technology, its mainland China subsidiary, had 863 employees at the end of 2025. That represented about 62% of Webull's global workforce.

The company is also building a 350 million yuan research and development center in Changsha, worth about $51.6 million.

The committee also alleged that Webull initially told lawmakers it had no offices or employees in the People's Republic of China. The panel later identified the Hunan subsidiary and its workforce.

The committee's scrutiny increased after Webull began carrying customer cash directly in October 2025.

That put a much larger pool of money at the center of the discussion. The committee said Webull held about $24.6 billion in customer assets.

The committee also said Webull has about 28 million users globally.

The committee argues that Webull's mainland operations and technology infrastructure could expose U.S. customer information to Chinese government demands.

The available findings do not establish that Chinese authorities have accessed U.S. customer data.

Why BULL stock is taking the bigger hit

The market reaction is largely about what the report could lead to. A House committee report doesn't automatically impose a fine or prevent Webull from operating in the U.S. Any formal restrictions would require action through the relevant government agencies.

But the report could increase scrutiny of Webull's technology, data practices and China operations. If the company is required to make major changes, those changes could bring additional costs or disrupt parts of its business.

That uncertainty is being reflected in the stock price.

Webull's own filings already list government inquiries and investigations related to its China connections among its disclosed risks. Wednesday's report has brought that issue into sharper focus.

The next significant development would be a response from U.S. regulators or another government agency. That could determine whether the concerns result in additional reviews, restrictions or demands for changes to the company's operations.