JPMorgan-UBS divests its hedge fund services involved in a Hong Kong insider trading scandal.

JPMorgan-UBS terminated its prime brokerage services to Infini Capital months prior to Hong Kong authorities launching an insider trading and corruption investigation worth HK$315 million.

On March 12, 2026, at 3:33 PM, Bloomberg News reported that international news agencies reported that... JPMorgan Chase & Co. UBS Group AG terminated its prime brokerage services to investment firm Infini Capital Management Ltd. several months ago. Prior to the public disclosure of the insider trading investigation in Hong Kong, according to sources familiar with the matter...

The news source stated that Both banks have ceased providing prime brokerage services to Infini Capital, but it remains unclear whether this termination extends to other businesses as well, or the exact reasons for this decision.

Previously, documents filed with the US Securities and Exchange Commission in March 2568 indicated that JPMorgan, UBS, and Standard Chartered were prime brokerage providers to Infini Capital.

The move comes after Hong Kong's financial market regulator and anti-corruption agency. It was revealed on Thursday that...Eight suspects have been arrested in connection with an insider trading and corruption case worth HK$315 million (approximately US$40 million) involving two major securities firms and a hedge fund manager.

Although the authorities have not officially disclosed the names of the companies involved, sources indicate that the Hong Kong offices of Citic Securities Co., Guotai Junan International Holdings Ltd., and Infini Capital were raided this week.

The investigation focuses on allegations that executives at a securities firm received bribes of more than HK$4 million from hedge fund managers in exchange for disclosing previously undisclosed information about share placements of several Hong Kong-listed companies.

Infini Capital is considered one of the increasingly influential players in the Hong Kong capital market, in many cases acting as the sole buyer in share allocations. However, sources indicate that three of the company's executives are currently unreachable, and the public offering (PAO) deal they were overseeing has been temporarily suspended.

Hong Kong's financial industry is facing stricter regulation amid rapidly increasing fundraising activity, with initial public offerings (IPOs) and capital increases soaring in the past year, and the number of IPOs projected to reach a four-year high in 2025.

refer : www.bloomberg.com

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