Guotai Junan International: Hong Kong Securities and Futures Commission and ICAC raid major company offices in Hong Kong, one employee detained

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On the morning of March 12, Guotai Junan International (1788.HK) announced on the Hong Kong Stock Exchange that the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption searched the company’s main business premises in Hong Kong, and an employee was detained.

Guotai Junan International stated that on March 10, 2026, the Hong Kong Securities and Futures Commission and the ICAC visited the company’s main business premises in Hong Kong to execute a search warrant and took away some documents. An employee who is not a member of the board was detained by the ICAC. The company attaches great importance to this and will continue to closely monitor the development of the situation. Due to the investigation, the company immediately suspended all operations, duties, and powers of this employee as of March 10, 2026, until further notice.

It is understood that the employee was taken from his home by the ICAC, possibly due to personal involvement in insider trading or other illegal activities, and is not related to the previously rumored involvement in investment banking business.

Industry analysts said that if the investigation concerns the employee’s personal conduct and not related to any illegal activities of the institution, it should not affect the normal operations of the company.

Guotai Junan International stated in the announcement that the company and the board of directors confirm that as of the date of this announcement, the overall business and operations of the group, including investment banking, are proceeding normally. The company’s finances are stable, and all business activities are compliant, orderly, and steady. The company is currently obtaining further information regarding the investigation and will make further announcements in accordance with listing rules. Shareholders and potential investors are advised to exercise caution when trading the company’s shares.

(Source: The Paper)

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