China Business Uncovered Podcast: Leaked Deals, Bribes Behind Hong Kong’s Insider-Trading Scheme - Caixin Global

A joint anti-corruption and securities probe has exposed how confidential share-placement information can be turned into lucrative short bets — putting the city’s booming fundraising market under scrutiny
Hong Kong’s rebounding capital markets were jolted in March when anti-corruption and securities regulators raided major Chinese brokerages as part of an investigation into suspected bribery and insider trading linked to share placements.
Authorities allege that senior brokerage executives accepted more than HK$4 million ($510,000) in bribes in exchange for confidential information on upcoming deals. With that information, a hedge fund allegedly built short positions before the deals were announced and profited when share prices fell, generating nearly HK$315 million in illicit gains.
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