According to foreign media reports, Hong Kong's Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) conducted unannounced searches at the Hong Kong offices of CITIC Securities International and Guotai Junan International on Tuesday, March 10th.

Guotai Junan International stated in an announcement on Thursday, March 12th, that the SFC and ICAC visited the company's primary business location in Hong Kong to execute a search warrant. Certain documents were taken away, and one employee, who is not a member of the board of directors, was detained by the ICAC for investigation.

Market sources indicate that Samuel Pan, the Head of Equity Capital Markets (ECM) at Guotai Junan International, was taken from his home by the ICAC.

Guotai Junan International confirmed that it immediately suspended all operational and executive duties and authority of the relevant employee on March 10th, pending further notice.

Public information on Samuel Pan's LinkedIn profile shows that he has been with Guotai Junan International for over ten years. He began his career as an analyst at J.P. Morgan and rose through the ranks to become Head of the Equity Capital Markets (ECM) department.

The focus of the regulatory investigation is on potential benefits transfer during the IPO process. This may involve undisclosed allocation of premium placement shares, accepting rebates, failure in due diligence responsibilities, and assisting companies in non-compliant "packaged listings,"涉嫌贪污、市场操纵等违法行为。涉嫌贪污、市场操纵等违法行为。suspected of corruption, market manipulation, and other illegal activities.

Both institutions have long served as joint sponsors and joint coordinators for IPO and refinancing projects in the Hong Kong stock market. They have jointly sponsored several projects, such as Kales, which has passed its hearing; Stand, which is in the application stage; the IPO of DeepTech, a Specialised Tech Company under Chapter 18C; and the placement financing of Jingtai Technology.