A significant financial corruption storm has swept through the Hong Kong capital market. On the evening of March 11, media reports indicated that the Hong Kong Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) launched a joint operation targeting senior executives of licensed institutions suspected of insider trading and corruption. The investigation involves Guotai Junan's Hong Kong subsidiary, CITIC SEC's Hong Kong subsidiary, and hedge fund Wuji Capital.
On March 12, the Hong Kong ICAC released an announcement confirming a joint operation with the SFC on March 10 and 11, codenamed "Fuse," to combat suspected insider trading and corrupt practices. Two securities companies and a hedge fund management firm, along with their executives, are persons of interest in the case. This represents the largest series of raids in the Hong Kong financial industry since 2017.
The incident is linked to a placement offering. During the joint operation, law enforcement officers searched 14 locations, including the offices and related residences of the two securities firms and the hedge fund management company. Eight individuals—six men and two women aged between 35 and 60—were arrested. Among them, Pan Jupeng, head of Equity Capital Markets (ECM) at Guotai Junan International, was the first individual publicly identified as involved in the case.
Guotai Junan International also issued an announcement stating it had immediately suspended all operational and executive duties and authority of the relevant employee. Public records show Pan Jupeng graduated from the University of Macau with a degree in Business Administration and holds an MBA from Syracuse University in the United States. He joined Guotai Junan International in 2015, having previously worked in the Hong Kong sales and trading department of J.P. Morgan.
Pan Jupeng has long been responsible for projects including Hong Kong/US IPOs, GDRs, placements, and block trades. The investigation is believed to be related to a placement project. Related reports suggest senior managers at the two licensed securities firms accepted bribes exceeding HK$4 million from the head of the licensed hedge fund management company. In return, they allegedly leaked confidential information concerning placement transactions of several Hong Kong-listed companies ahead of public announcements.
After obtaining this confidential information, the hedge fund management company reportedly took short positions in the relevant stocks by selling them short in the market and/or entering into short equity swap contracts. When the companies subsequently announced their placement plans, causing the share prices to fall, the hedge fund is alleged to have profited approximately HK$315 million from these short positions. Market observers speculate the ICAC investigation likely followed a reverse tracing method: first identifying abnormal trading activity, then pinpointing funds that generated substantial profits during the period, and conducting a follow-up investigation that ultimately uncovered the internal sources of the leaks.
As another party involved in the case, Wuji Capital is an asset management firm that has rapidly risen in recent years with a strategy focused on "Middle Eastern capital + Hong Kong technology stocks." It is understood that Wuji Capital is not a new player in the Hong Kong market but rather a cross-border asset manager founded by former international investment bankers, backed by substantial Middle Eastern capital, and specializing in Asian markets. Its growth trajectory is closely tied to the recent prosperity of the Hong Kong stock market.
Public information indicates Wuji Capital was founded in 2015, with funding primarily sourced from long-term institutional investors such as Middle Eastern sovereign wealth funds and family offices. It accelerated its布局 in the Hong Kong market in 2024 and went all-in in 2025, participating in over 15 Hong Kong stock projects throughout the year through a combination of cornerstone investments, exclusive placements, and strategic top-up placements, with total investment exceeding HK$15 billion. Prior to being implicated in this case, Wuji Capital maintained a high-frequency investment pace. Its HK$631 million strategic placement in Black Sesame Intelligent on March 9, 2026, marked its last major Hong Kong stock investment before the case emerged, during which it also announced intentions for long-term strategic synergy with Black Sesame Intelligent in areas like AI and autonomous driving.
As of now, the specific list of listed companies involved in the investigation has not been disclosed.
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