Taken from home! Guotai Junan International: An employee detained by the ICAC!

On March 12 before the market open, Guotai Junan International announced that on March 10, the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption visited the company’s main business location in Hong Kong to execute search warrants. An employee (not a member of the board) was detained by ICAC.

Sources obtained by China Securities Journal indicate that the employee was taken from their home by ICAC, possibly due to suspected insider trading or other illegal activities.

Guotai Junan International stated that the company attaches great importance to this matter and will continue to closely monitor its development. Due to the investigation, the company has temporarily suspended all operations, duties, and powers of the relevant employee as of March 10, 2026, until further notice.

Earlier, multiple media reports indicated that Hong Kong authorities recently raided the offices of CITIC Securities’ local subsidiary and Guotai Junan International Holdings.

Media reports said that Hong Kong authorities have increased scrutiny of investment activities, including launching an investigation into hedge fund Segantii Capital Management for suspected insider trading.

The anti-corruption agency last year accused a former employee of the Hong Kong Stock Exchange of accepting bribes in a suspected insider trading case.

On February 26, the Hong Kong Stock Exchange (HKEX) released its 2025 performance report. The spot, derivatives, and commodities markets achieved record-high trading volumes, driving revenue and profit to new highs for the second consecutive year; at the same time, the amount of new share financing led the global market, reaching HKD 286.9 billion, more than three times that of 2024.

In the primary market, Hong Kong’s new share financing activities in 2025 were particularly active, ranking first globally in total financing amount. Throughout the year, HKEX welcomed 119 new listings, raising a total of HKD 26.9 billion, more than three times that of 2024, with two companies ranking among the top five global new share financings for the year.

In the secondary market, trading volumes in spot, derivatives, and commodities markets hit record highs, increasing transaction and settlement fees, with main business revenue rising 32% compared to 2024.

Additionally, increased interest from global investors in Chinese assets contributed to higher trading volumes in the Shanghai and Shenzhen Stock Connects, with average daily transaction amounts reaching a new high of HKD 212.4 billion, up 42% from 2024. Moreover, a large amount of mainland capital seeking diversified investment channels also drove the daily average transaction amount of the Hong Kong Stock Connect to a new high of HKD 121.1 billion, up 151% from 2024.

Guotai Junan International stated in its announcement that the company’s overall business and operations, including investment banking, are maintaining normal operations; the company remains financially sound, with all business activities conducted in compliance and in an orderly, stable manner. The company is obtaining further information regarding the investigation and will make further announcements in accordance with listing rules.

Media reports also indicated that an employee of CITIC Securities’ local subsidiary was taken away. As of press time, CITIC Securities has not responded.

Formatting: Luo Xiaoxia

Proofreading: Liu Rongzhi