Hong Kong authorities are probing allegations of insider trading involving staff members at Hong Kong Exchanges & Clearing Ltd and the Securities and Futures Commission (SFC), according to two people familiar with the matter.
Authorities in the Asian financial hub have conducted the investigation since late last year, said one of the people with knowledge of the matter.
The case might draw initial conclusions as early as the end of September, the other source added.
Bloomberg News first reported the probe on Wednesday.
The report said, citing people familiar with the matter, that allegations also involved brokers and social media influencers, with authorities examining whether regulatory staff tipped off traders about sensitive announcements from dozens of listed companies over several years.
Some of the announcements that were allegedly leaked involve privatisations, which flourished over the past few years, according to the report.
SFC in an email statement told Reuters that it is the regulator’s policy “not to comment on investigations, if any”.
HKEX declined to comment.
The investigation, which could last years, may result in charges or policy changes aimed at strengthening market transparency, Bloomberg reported.
Hong Kong’s securities regulator in November finalised its guidelines on confidential information communications ahead of share placements and large securities transactions, known as block trades, which came into effect in May this year.
Reuters
