HK Regulators Raid Guotai Junan and Citic Unit in Probe
Hong Kong authorities raided Guotai Junan and CLSA this week during a probe into recent share sales. One employee was detained and various documents seized.
Authorities in Hong Kong have conducted a raid on the offices of Guotai Junan International Holdings Limited, seizing documents and detaining an employee. The brokerage confirmed on Thursday that the operation was carried out by the Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) on Tuesday.
The regulatory scrutiny has reportedly expanded to include CLSA, a subsidiary of CITIC Securities Company Limited. According to sources familiar with the situation, the probe into the CLSA unit is focused on its management of recent share sale transactions.
