JPMorgan Chase (JPM) and UBS Group (UBS) dropped an investment firm, which was recently raided by Hong Kong authorities, as a prime brokerage client well before the investigation into insider dealing became public, according to a media report on Thursday.
The two banks ended their prime brokerage services relationship with Infini Capital Management Ltd. months ago, Bloomberg News reported, citing people familiar with the matter. UBS (UBS) and JPMorgan Chase (JPM), along with Standard Chartered Plc (SCBFF) (SCBFY), were named as Infini’s prime brokers in a March 2025 filing with the U.S. Securities and Exchange Commission.
The Bloomberg report indicated it’s unclear if the two banks ended other business with Infini and what led to the decision. The three banks declined to comment to the article’s reporters. Infini, they said, didn’t immediately respond to requests for comment.
Hong Kong’s financial regulators and anti-graft agency on Thursday said they arrested eight people as part of their probe into a HK$315M (US$40M) insider trading deal involving two major brokerages and a hedge fund manager. They didn’t name the entities involved, but people familiar with the matter told Bloomberg that local offices of Citic Securities, Guotai Junan International Holdings, and Infini were raided this week.
The investigation focuses on allegations that executives at the securities firms took more than HK$4M in bribes from a hedge fund manager in exchange for non-public details of share placements for several Hong Kong-listed companies.