Two former executives of a listed company have been arrested on suspicion of market manipulation and corruption.

The Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) of Hong Kong launched a joint operation codenamed "Operation Leverage" on July 23 to crack down on a sophisticated criminal group suspected of manipulating the shares of a listed company through corrupt means. The SFC had earlier detected suspicious trading activities involving market misconduct and suspected corruption, and referred the case to the ICAC for investigation. The SFC was investigating offenses related to market misconduct under the Securities and Futures Ordinance, leading to the joint operation. During the joint operation, ICAC and SFC officers conducted searches at a total of 14 locations, including the offices of the implicated listed company and several licensed securities firms. The ICAC also arrested the former chairman and a former executive director of the listed company under the Prevention of Bribery Ordinance. The arrested individuals are suspected of conspiring to use falsified documents, including internal documents and announcements of the listed company, falsely claiming that the company had entered into a share subscription agreement and joint venture project with a mainland Chinese enterprise, involving a total of over HK$20 million. They are also suspected of manipulating the share price of the listed company through multiple nominee accounts. Additionally, the former executive director of the listed company also served as a director of a securities firm, and he is accused of receiving benefits from the former chairman of the company to misappropriate shares of a client, totaling approximately HK$9 million. As the investigation is ongoing, the ICAC and SFC will not make further comments at this time.