Hong Kong’s Securities and Futures Commission (SFC) conducted surprise searches at the Hong Kong offices of two mainland Chinese brokerage firms, involving Jiangyin International and Citic Securities International, in connection with suspected irregularities related to stock offerings.
According to reports from Reuters, the SFC seized a batch of documents and electronic communication devices during the operation.
The investigation this time reportedly involves improper activities related to stock offerings, but it is not yet clear which specific listed or fundraising projects are implicated. Both the SFC and Citic Securities International declined to comment, while Jiangyin International did not respond to media inquiries.
Citic Securities International is a subsidiary of Citic Securities in Hong Kong, and Jiangyin International’s parent company is China Construction Bank. Sources indicated that this search is part of the latest regulatory investigations.
In March of this year, the Independent Commission Against Corruption (ICAC) and the SFC launched a joint operation to combat senior executives of licensed institutions suspected of insider trading and corruption. At that time, a total of 8 individuals were arrested, including executives from two securities companies and a hedge fund, as well as an intermediary. There were also reports at that time indicating that Citic Securities and China International Capital Corporation (CICC) International were under investigation by the SFC.