Exclusive: Hong Kong Regulator Raids Huatai Office in Insider Trading Probe

Hong Kong’s securities regulator raided Huatai Financial Holdings (Hong Kong) Ltd.’s office in August and questioned employees in connection with a suspected insider-trading scheme involving U.S. stock options, according to multiple sources familiar with the matter.

The inquiry is likely tied to a May options-trading scandal in which investors allegedly traded ahead of a Chinese regulatory crackdown on cross-border brokerages Futu Holdings Ltd. and UP Fintech Holding Ltd., generating more than $100 million in profit.