Xin Lang Cai Jing·2026-03-12 23:12Core Insights - The Hong Kong Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) announced a joint operation named "Fuse" to investigate insider trading and corruption involving two licensed brokers and a hedge fund [3]. Group 1: Investigation Details - The joint operation will take place on March 10 and 11, 2026, with searches conducted at 14 locations, including the offices of the licensed institutions and residences of the arrested individuals [3]. - Eight individuals, including six men and two women aged between 35 and 60, were arrested, comprising executives from the licensed brokers and the hedge fund, along with an intermediary [3]. Group 2: Allegations and Financial Impact - The SFC and ICAC suspect that executives from the two licensed brokers accepted over HKD 4 million in bribes from the hedge fund owner, leaking confidential information about a stock placement before it was publicly disclosed [3]. - The hedge fund allegedly profited approximately HKD 315 million by short-selling related stocks and entering into short stock swap contracts based on the leaked information [3]. Group 3: Involved Entities - While the SFC and ICAC did not specify the names of the licensed brokers and hedge fund, market sources indicated that the offices of CITIC Securities (6030.HK), Guotai Junan International (1788.HK), and the hedge fund Infini Capital were searched [4]. - Guotai Junan International confirmed the SFC and ICAC's visit and the arrest of an employee, believed to be Samuel Pan, the head of ECM [4]. Group 4: Infini Capital Background - Infini Capital, founded by Tony Chin in 2015, initially focused on proprietary trading and obtained an asset management license from the SFC in 2019 [5]. - The hedge fund gained significant recognition in 2021 with a 96% annual return, ranking at the top of Asian hedge funds [5]. - Infini Capital established a subsidiary in Abu Dhabi in 2024 and received a financial license from the Abu Dhabi Global Market Financial Services Regulatory Authority in February 2025 [5].