On March 12, prior to market opening, Guotai Junan International announced that on March 10, the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption visited the company's main Hong Kong business premises to execute a search warrant. One employee, who is not a board member, was detained by the ICAC. Information obtained indicates the employee was taken from their home, potentially related to personal involvement in suspected insider trading or other illegal activities. Guotai Junan International stated it attaches great importance to the matter and will continue to monitor developments closely. Due to the investigation, the company immediately suspended all operational and executive duties and authorities of the relevant employee on March 10, 2026, until further notice.
Previously, multiple media outlets reported that Hong Kong authorities recently conducted surprise searches of the offices of the local subsidiary of CITIC Securities and Guotai Junan International Holdings Limited. Reports indicated that Hong Kong authorities have heightened scrutiny of investment activities, including initiating an investigation into suspected insider trading by hedge fund Segantii Capital Management. Last year, the anti-corruption agency charged a former employee of Hong Kong Exchanges and Clearing with accepting bribes in a suspected insider trading case.
On February 26, HKEX released its 2025 performance report. Record-high trading volumes in the spot, derivatives, and commodities markets drove revenue and profit to new highs for the second consecutive year. Meanwhile, IPO fundraising led global markets, with total financing reaching HKD 286.9 billion, more than triple the 2024 figure. In the primary market, Hong Kong's IPO activity was particularly vigorous in 2025, ranking first globally in fundraising. Throughout the year, HKEX welcomed 119 new listings, with total fundraising reaching HKD 26.9 billion, more than three times the 2024 amount, with two companies among the top five globally in IPO fundraising for the year.
In the secondary market, record trading volumes in spot, derivatives, and commodities markets increased trading and settlement fees, boosting core business revenue by 32% compared to 2024. Increased global investor interest in Chinese assets also drove up trading volume through Stock Connect programs, with the average daily turnover reaching a new high of CNY 212.4 billion, up 42% from 2024. Additionally, significant mainland capital seeking diversified investment channels pushed the average daily turnover for Southbound Stock Connect to a record HKD 121.1 billion, a 151% increase from 2024.
Guotai Junan International stated in its announcement that overall business and operations, including all business segments such as investment banking, remain normal. The company is financially sound, and all operational activities are compliant and stable. The company is gathering further information regarding the investigation and will make additional announcements in accordance with listing rules as appropriate. Media reports simultaneously indicated an employee from CITIC Securities' local subsidiary was also taken away; as of publication, CITIC Securities had not responded.
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