In Depth: Secretive Hedge Fund at Center of Hong Kong Insider-Trading Probe

1. In March 2026, Hong Kong’s financial sector was shaken by rumors that a Chinese investment bank was facing trouble, triggered by surprise joint raids carried out by the Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) on multiple Chinese brokerages. These unexpected actions created anxiety within Hong Kong’s investment community. [para. 1][para. 2]

2. Guotai Junan International Holdings Ltd., a major Hong Kong-listed brokerage, confirmed that its office was searched and that an employee had been detained and suspended. Similarly, Citic Securities Co. Ltd., part of the state-owned Citic Group, disclosed that its Hong Kong branch had been visited by authorities, resulting in document seizures and employee questioning. Notably, Samuel Pan, head of equity capital markets at Guotai Junan International, was identified as being detained by the ICAC, but no Citic Securities staff were confirmed detained. The investigation focuses on allegations of insider trading, though the affected brokerages’ operations continue normally. The probe has also exposed a secretive hedge fund making an aggressive entrance into Hong Kong’s equity market. [para. 3][para. 4][para. 5][para. 6]

3. The operation, called “Operation Fuse,” extended far beyond the initial two brokerages. Authorities revealed that on March 12, 14 locations were searched citywide, including brokerage offices and those of a hedge fund. This led to the arrest of eight people—six men and two women aged 35 to 60—including senior executives at both brokerages, a hedge fund, and an intermediary. Investigators believe brokerage executives accepted more than HK$4 million (US$512,000) in bribes from a hedge fund owner, in exchange for confidential details about upcoming share placements in Hong Kong-listed firms. Using this information, the hedge fund allegedly built short positions or used derivatives (such as swaps) to profit when share prices dropped following placement announcements, netting almost HK$315 million in illicit gains. [para. 7][para. 8][para. 9][para. 10][para. 11]

4. While the agencies did not name the implicated hedge fund, sources pointed to Infini Capital Management Ltd., an opaque Hong Kong-based firm led by Tony Chin. Infini Capital has quickly grown in stature through aggressive trades in Hong Kong stocks, deploying nearly HK$20 billion in the market. Despite this, the firm maintains a low profile, with sparse information on its website. In 2025, it received regulatory approval from the Abu Dhabi Global Market, though some UAE investment institutions reported never having heard of the firm, despite rumors of Middle Eastern financial backing. [para. 12][para. 13][para. 14][para. 15][para. 16]

5. Tony Chin, Infini Capital’s founder, is known for being reclusive and soft-spoken, born in Shanghai and relocating to Hong Kong at age 3. He holds degrees in economics and mathematics from the University of Michigan, previously worked at HSBC and Morgan Stanley, and at one point unsuccessfully applied to Citic Securities. Beyond finance, Chin founded and chairs the Hong Kong Bulls basketball team, which won two consecutive championships in China’s National Basketball League, and has made controversial sports investments in Taiwan. As of December 5, 2025, Chin was no longer a responsible officer at Infini Capital and was reportedly not detained in the recent raids. [para. 17][para. 18][para. 19][para. 20][para. 21][para. 22][para. 23][para. 24]

6. Infini Capital originally started as a proprietary trader focusing on Asian markets, operating out of Hong Kong and Abu Dhabi, and began raising external capital in late 2023. Since October 2024, it has participated as an anchor investor, placement participant, or financier in at least 15 deals with listed firms in technology and emerging industries. In 2025 alone, it was a cornerstone investor in seven Hong Kong IPOs and took part in secondary placements totaling over HK$15 billion. Its largest disclosed investment was a HK$5.45 billion share subscription in GCL Technology Holdings in September 2025. The same brokerages now under investigation, Guotai Junan International and Citic Securities, were repeatedly involved as sponsors or agents in deals with Infini. According to market insiders, Infini’s aggressive strategies may have drawn heightened regulatory attention. [para. 25][para. 26][para. 27][para. 28][para. 29][para. 30][para. 31][para. 32][para. 33]