SFC Reportedly Raids Huatai Securities Hong Kong Office Over Suspected Insider Trading Probe

Mainland Caixin reported that the Hong Kong Securities and Futures Commission raided Huatai Financial Holdings (Hong Kong)'s office at The Center in Central in August, and questioned some staff, including Chief Executive Wang Lei and wealth management personnel. Huatai Financial Holdings (Hong Kong) later told Caixin that the SFC investigation was unrelated to the company and involved only individual clients. Wang Lei also reportedly addressed staff at an internal morning meeting to clarify the situation and deny rumours, according to ETNet. The report said the regulatory action was linked to suspicions over unusually large U.S. stock options trading in May, when traders were alleged to have positioned in related options before news of a mainland crackdown on cross-border brokers was announced. Overseas regulators and law enforcement agencies later joined the probe into the source of funds and the background of the traders.