Hong Kong Securities and Futures Commission Investigates Huatai Financial Holdings' Hong Kong Office: Case Involves Clients Using Insider Information to Short Futu and Tiger Brokers

According to reports from Caixin, multiple sources revealed that the Hong Kong Securities and Futures Commission has visited the offices of Huatai Financial Holdings (Hong Kong) located at The Center in Central to conduct an investigation, with some employees questioned. The inquiry stems from the possibility that certain clients' trades at the securities firm may be connected to the insider trading incident involving US stock options at Futu Holdings and Tiger Brokers in May this year. Late yesterday evening, a source close to Huatai Financial Holdings (Hong Kong) stated that the SFC's investigation has nothing to do with the company itself and only involves individual clients. Unlike the mainland's securities trading regime, regulators in the Hong Kong market cannot directly see through to the trading activities of brokerage clients from the exchange. Therefore, investigating improper trading practices by broker clients typically requires cooperation from the securities firms. Previously reported, the Futu-Tiger options insider trading case has identified 45 individuals, with combined illicit profits totaling $155 million.