HONG KONG: Hong Kong regulators raided the offices of two leading Chinese brokerages and a prominent investment firm this week, marking one of the most significant enforcement actions against the city’s financial sector in almost a decade.
Local offices of Citic Securities Co and Guotai Junan International Holdings Ltd were targeted and at least one senior banker was detained, according to sources.
Infini Capital Management Ltd, an investment firm founded by Tony Chin, was also caught up in the sweep.
While the specific focus of the investigation remains undisclosed, the raids signal an intensification of oversight in the Asian financial hub.
The move follows a period of heightened scrutiny over dealmaking, spurred by a surge in trading volumes and a recent wave of initial public offerings.
Guotai Junan yesterday said one employee was detained in a March 10 raid and some documents were seized. Infini declined to comment.
Citic didn’t immediately reply to requests for comment.
The Securities and Futures Commission and the Independent Commission Against Corruption also didn’t immediately respond to requests for comments.
Guotai Junan shares slid as much as 6.5% in Hong Kong, while Citic Securities fell 2.3%.
The probe marks the biggest raids in the city since 2017, when anti-corruption and securities regulators searched eight locations and arrested three senior company executives in an investigation of what was dubbed the “Enigma Network”.
Chin, a former Morgan Stanley investment banker, founded Infini Capital which has become increasingly active in Hong Kong’s initial public offering (IPO) and private placement market.
The company narrowly avoided a penalty deadline in December to buy additional shares in a private placement deal.
Infini has completed placement deals with SenseTime Group Inc, Beijing Fourth Paradigm Technology Co and GCL Technology Holdings Ltd.
Regulators earlier warned brokerages across Hong Kong against filing sloppy IPO applications as listings surged.
The city was the top destination worldwide for IPOs in 2025 and is off to its busiest-ever start to a year for new listings.
In other recent legal action, authorities have brought a case against hedge fund firm Segantii Capital Management over alleged insider trading. — Bloomberg
