Eight Arrested in Hong Kong Insider Trading Probe
An investigation by Hong Kong’s Securities and Futures Commission led to the arrest of eight individuals over alleged insider trading.
Eight individuals aged 35 to 60 in Hong Kong were arrested over alleged insider trading in a joint operation by the Securities and Futures Commission (SFC) and the city’s anti-corruption agency, Independent Commission Against Corruption (ICAC). According to an SFC statement, the arrestees include senior executives of two licensed securities firms and a licensed hedge fund, as well as a middleman.
The securities executives are suspected of having accepted over HK$4 million ($500,000) in bribes from the hedge fund owner for disclosing confidential information about share placements of various Hong Kong-listed companies before being publicly announced. The hedge fund subsequently acted on such information by establishing short positions, which are believed to have led to profits of around HK$315 million.
No further comments were made by the SFC and ICAC as the investigation is ongoing.
