[Regulatory Action] CITIC Securities Hong Kong and Guotai Junan International offices searched. Caixin: Guotai Junan International ECM Director Pan Ju Peng taken away by the ICAC for investigation

Bloomberg, citing sources, reported that Hong Kong authorities conducted a surprise raid on the offices of CITIC Securities Hong Kong and Guotai Junan International (01788) on Tuesday (the 10th), and took at least one senior executive for questioning. Additionally, Caixin indicated that at least two Chinese-funded investment banks were searched this week, including Guotai Junan International’s ECM head, Samuel Pan, who was taken away by the ICAC, suspected of assisting in the investigation.

According to LinkedIn, Samuel Pan has been with Guotai Junan International since June 2015 and was promoted to Managing Director and ECM head in June 2024. Prior to that, he worked at Morgan Stanley as an analyst and manager, accumulating extensive investment banking experience.

Market speculation suggests that the search may be related to IPO activities. CITIC Securities Hong Kong and Guotai Junan International have frequently acted as sponsors for Hong Kong stock listings, such as the recently approved logistics robotics company KAILUOS and the January-listed Stand Robotics.

The Securities and Futures Commission declined to comment, and the ICAC has not responded to requests for comment. CITIC Securities Hong Kong and Guotai Junan Hong Kong also did not respond immediately.

This raid comes at a time of significant recovery in Hong Kong’s capital markets. Over the past year, trading volume has surged, and a wave of IPOs worth billions of dollars has emerged. While the specific nature of the investigation remains unclear, authorities have intensified their focus on investment activities.