HK Stock Market Move | Guotai Junan I (01788) fell 5% in the afternoon and recently got caught in a regulatory storm. Reports suggest that some foreign institutions have temporarily halted cooperation.

Guotai Junan I (01788) dropped 5% in the afternoon, and as of press time, it was down 3.85% to HK$2.5, with a turnover of HK$215 million. On the news front, according to Sina Hong Kong Stock, the Hong Kong Securities and Futures Commission and the Independent Commission Against Corruption conducted a joint investigation last week into the investment banking departments of two Chinese securities firms, with the ripple effect spreading from the regulatory level to the business level. Sina Hong Kong Stock has learned exclusively that some foreign institutions have temporarily suspended trading cooperation with the two investment banks for compliance reasons. As of now, both investment banks have not commented on the reaction of foreign institutions. According to recent reports by Tencent News "Frontline," Shen Yin, vice president of bond sales at Standard Chartered Bank's fixed income department, has been suspended. There are market rumors that Samuel Pan, head of stock capital markets (ECM) at Guotai Junan, has been taken away for investigation. Tencent News "Frontline" cited reports that Shen Yin and Samuel Pan are husband and wife.