- News agency says products related to mainland securities
- No comment immediately available from Hong Kong's regulator
Hong Kong’s securities regulator is investigating whether brokers and hedge funds in the city violated licenses by creating and trading Chinese investment products, Reuters reported, citing unidentified people.
The two-week-old probe covers international securities firms and Hong Kong units of Chinese brokers and involves Chinese investment quotas used to create products for hedge funds to trade stocks and bonds in the mainland, Reuters said. No comment was immediately available from the Securities and Futures Commission.
Brokers may have needed extra licenses in connection with some products, where they had the discretion to manage portfolios of securities for their clients, the news agency reported. One unidentified person said the SFC was looking at whether some hedge funds had breached their licenses or general conduct rules.
The probe is intended to aid the China Securities Regulatory Commission, Reuters reported.