Hong Kong’s Securities and Futures Commission raided the local offices of CCB International and China Securities International on May 27, seizing documents and electronic devices as part of an investigation into suspected misconduct tied to share offerings.
The operation marks the second time in three months that Hong Kong’s top financial regulator has gone after offshore subsidiaries of state-linked Chinese banks. In March, the SFC targeted units of Citic Securities and Guotai Junan International in a similar enforcement action. Together, these raids represent one of the most significant regulatory crackdowns on the brokerage sector in nearly a decade.
## What happened
The SFC’s enforcement teams showed up at the Hong Kong offices of both CCBI and CSCI, which are the local arms of major Chinese financial institutions. They walked out with documents and electronic devices, the standard playbook for regulators building a case.
Neither the SFC nor the targeted firms have issued public statements about the raids.
