(Yicai Global) Nov. 4 -- Shares of Futu Holdings gained after the cross-border brokerage backed by Tencent Holdings said it plans to spend USD300 million by the end of the year to repurchase its own stock, which has lost almost 67 percent of its value since the end of June.

The shares [NASDAQ:FUTU] closed up 7.8 percent at USD59.85 apiece in New York yesterday, giving Hong Kong-based Futu a market cap of USD8.8 billion.

Under the plan, Futu may buy stock through various means, including open market transactions, privately negotiated deals, any combination thereof or other legally permissible means, it said in a statement yesterday without giving a reason for the move. Buybacks aim to buoy a firm’s stock price by removing some of its shares from the market.

Last week, a Chinese central banker said brokers that operate across borders are doing business illegally if they cater to Chinese clients through the internet and are not licensed in China. He did not name any companies, but the shares of Futu and Xiaomi-backed Up Fintech Holding, better known as Tiger Brokers, sank afterwards.

The warning given by Sun Tianqi, director-general of the Financial Stability Bureau at the People's Bank of China, followed an article posted on the People’s Daily’s website two weeks earlier that said cross-border online brokers risk breaking data privacy law. New legislation to protect personal information came into force in China on Nov. 1.

Futu's shares closed down over 12 percent on Oct. 28, hitting a 10-month low of USD50.10 despite the company releasing a statement in response. Futu said it is licensed in Hong Kong and the Chinese mainland, and it has been under strict supervision since it was set up. It has always observed the compliance principle and operated within industry laws and regulations, it added.

Editor: Futura Costaglione