Guotai Junan Employee Suspected of Bribery, Detained by Hong Kong ICAC

MaticHoleFiller

2026-03-15 13:18:56

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Hong Kong’s Independent Commission Against Corruption (ICAC) announced on March 12 that it conducted a joint operation codenamed “Fuse” with the Hong Kong Securities and Futures Commission on March 10 and 11 to combat suspected insider trading and corruption. Two securities firms, a hedge fund management company, and senior executives are all stakeholders in the case.

During the operation, law enforcement officers searched 14 locations, including offices and related residences of two securities firms and one hedge fund management company. Six men and two women aged between 35 and 60 were arrested.

The investigation revealed that a senior executive of one of the involved securities firms allegedly received over $4 million in bribes from the head of the hedge fund management company, leaking confidential information about the stock placements of multiple Hong Kong-listed companies in advance. Based on this information, the hedge fund established short positions on the relevant stocks, profiting from short selling and short stock swap contracts. After the placement information was announced, the stock prices dropped, and the hedge fund reportedly made approximately $315 million in profit.

Before the market opened on March 12, Guotai Junan International (01788.HK) announced that an employee had been detained by the ICAC, who was taken from their home. The announcement stated that, due to the investigation, the company immediately suspended all operations, duties, and powers of the employee involved as of March 10 until further notice.

Public information shows that Guotai Junan International is a subsidiary of Guotai Haitong Group. According to a profit warning released by Guotai Junan International on January 26, based on a preliminary review of the group’s management accounts for the year ending December 31, 2025, the group expects net profit for the year to be between HKD 1.28 billion and HKD 1.38 billion, a significant increase of 265% to 293% compared to HKD 351 million in 2024.

As of press time, Guotai Junan International (01788.HK) has fallen 4.2%.

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