Hong Kong authorities arrest eight in insider trading probe

Hong Kong authorities said on Thursday they had launched an insider trading probe into two brokerages and a hedge fund, and arrested eight people in their biggest crackdown on the financial industry in recent years.



The announcement did not name the firms, but brokerage Guotai Junan International said in a statement it had been raided this week.



Sources familiar with the matter identified CLSA, a unit of Citic Securities, and hedge fund Infini Capital as the other firms.



The sources were not authorised to speak to the media and declined to be identified.



Citic Securities, in a filing to Shanghai Stock Exchange, confirmed its Hong Kong subsidiary, without naming it, was probed on Tuesday with some documents being taken and one staff member questioned.



The company said it was paying "high attention" to the matter and will closely follow developments, adding that the subsidiary was operating normally.



Citic and Guotai Junan's parent firm are China's two biggest brokerages.



Those arrested included senior executives, Hong Kong's Securities and Futures Commission and the Independent Commission Against Corruption (ICAC) said in a statement on the case, which involved share placements.