According to a CNBC report, the panel raised concerns about Webull’s software, data pipelines, and engineering infrastructure.
- The House Select Committee on China reportedly said Webull is "tied in structural ways" to the Chinese government.
- It added that there is "a profound gap" between the company’s American branding and its underlying structure.
- A spokesperson for Webull told CNBC that it was “deeply disappointing” that the Select Committee published a report containing “significant inaccuracies and unsupported conclusions” without seeking clarification from the company.
Webull (BULL) shares plunged in early morning trade on Wednesday after a bipartisan House committee investigation reportedly raised concerns about the brokerage’s ties to China, putting the stock on track for its steepest single-day decline in more than a year.
According to a CNBC report, the House Select Committee on China said Webull is "tied in structural ways" to the Chinese government. The panel also pointed to "a profound gap" between the company’s marketing as an American brokerage and the entities and infrastructure it says influence the firm.
The committee cited Webull’s ownership, technical staff, technology infrastructure, cross-border data routing, financing and compliance practices in outlining its concerns.
BULL stock plummeted over 30% in pre-market, on track to hit lows last seen in April. A drop of over 30% would also be the shares’ biggest drop since April 2025.
BULL stock was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the company shifted to ‘bullish’ from ‘bearish’ territory voer the past day.
Webull Disagrees With Report
“It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull,” a spokesperson for the company told CNBC.
“Webull’s U.S. business is conducted from its global headquarters in St. Petersburg, Florida and its office in New York City, while U.S. customer data is stored in the U.S. and access to sensitive customer data is controlled by the U.S.,” they added. “We remain prepared to address any questions directly and with the same transparency we bring to the SEC, FINRA, and regulators worldwide.”
House Panel Questions Webull’s China Ties
The investigation also raised concerns about the relationship between Webull’s U.S. operations and its China-linked technical infrastructure. The committee’s findings reportedly challenged the distinction between how the brokerage presents itself to American customers and the structure supporting its business.
The committee said its concerns intensified in October 2025, when Webull began holding customer cash directly, according to a regulatory filing cited in the report.
The panel stated that the arrangement could expose billions of dollars in American customer capital to risks associated with the company’s structure and China ties.
Retail Traders Split On BULL Stock Selloff
Reaction on Stocktwits was mixed despite the sharp premarket decline.
One retail trader questioned whether Webull’s disclosed employment of Chinese staff was sufficient to justify national security concerns, adding that the committee’s findings did not establish wrongdoing.
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Other traders viewed the selloff as excessive and suggested the decline could present a buying opportunity.
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BULL stock has fallen over 11% this year and almost 50% in the last 12 months, not accounting for the pre-market dip.
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