Hong Kong regulator probes firms on China securities products

Hong Kong’s Securities and Futures Commission is investigating whether international and mainland hedge funds and brokers operating in the territory violated their licenses or general conduct rules through creating and trading Chinese investment products, Bloomberg reported, citing a Reuters report that cited unnamed sources. The two-week-old probe is scrutinizing Chinese investment quotas used to create products for hedge funds to trade stocks and bonds on the mainland. Brokers may have needed extra licenses for for some of the products for which they had discretion to manage portfolios of securities for their clients. No comment was immediately available from the commission.