FINANCE

Exclusive: Hong Kong Regulator Raids Huatai Office in Probe Over Suspicious U.S. Options Trades

Published: Sep. 4, 2026 9:55 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Hong Kong's Securities and Futures Commission. Photo: IC

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.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and Bloomberg - for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Hong Kong's SFC raided Huatai Financial Holdings' office in August over suspected insider trading in U.S. stock options.
Probe ties to a May scandal yielding over $100M profit via pre-crackdown trades on Futu and UP Fintech; 47 accounts by 45 individuals made $155M.
CEO Wang Lei assisted inquiry, but company had not commented as of publication.

AI generated, for reference only

Who’s Who

AI generated, for reference only

What Happened When

May 2026：: An options-trading scandal occurred 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.

late June 2026 and early July 2026：: U.S. options market makers Susquehanna International and Citadel Securities won court approval to pursue claims against the traders.

late June 2026 and early July 2026：: Regulators announced actions against Futu and UP Fintech.

August 2026：: Hong Kong’s securities regulator raided Huatai Financial Holdings (Hong Kong) Ltd.’s office and questioned employees in connection with a suspected insider-trading scheme involving U.S. stock options.

Aug. 29, 2026：: Wang Lei updated his social-media account.

Sept. 3, 2026：: Wang Lei appeared at the 2026 GBA Conference in Hong Kong.

Sept. 4, 2026 (evening)：: Caixin contacted Huatai Financial Holdings for comment, but the company hadn’t responded by the time of publication.

After a month of data analysis (timing inferred post-August 2026 raid)：: Investigators narrowed the suspected trading to 47 accounts held by 45 individuals who together made $155 million in profit.

AI generated, for reference only