Hong Kong watchdog launches probe into Citic local unit, sources say

Hong Kong's securities regulator has launched a probe into the local unit of ​Chinese brokerage Citic Securities (6030) linked to its handling ‌of some recent share sale transactions, two sources with knowledge of the matter said on Wednesday.

The Securities and Futures ​Commission (SFC) raided the Hong Kong office of ​CLSA, an offshore arm of Beijing-headquartered Citic ⁠Securities, on Tuesday, said the sources, declining to ​be named due to the sensitivity of the matter.

A ​spokesperson for SFC declined to comment, while Citic did not immediately respond to Reuters' request for comment.

Bloomberg first reported, citing ​people familiar with the matter, that Hong Kong ​authorities raided the offices of Citic Securities' local unit and ‌Guotai ⁠Junan International (1788).

Authorities on Tuesday raided the two firms' equity capital market divisions and took at least one senior executive away for questioning, the ​report said.

Guotai Junan ​International didn't ⁠immediately respond to Reuters' request for comment.

Hong Kong was the world's top market ​listing venue in 2025, with total ​equity ⁠fundraising rising 164 percent to US$103  billion, according to Hong Kong stock exchange data. The jump was mainly driven by a ⁠sharp ​rebound in equity offerings by ​Chinese firms.

Reuters