Hong Kong graft investigators swoop on unit of Chinese finance giant Guotai Junan

Graft-busters raided the Hong Kong unit of one of the nation's largest investment houses and took away its executive director, the company revealed yesterday as trading in its shares resumed after a two-day suspension.

Independent Commission Against Corruption investigators swooped on the Central offices of Guotai Junan International, the local subsidiary of Guotai Junan Securities, on Monday. They seized "certain securities trading account-opening records and an agreement relating to a placing case", the company said in a statement to the stock exchange.

Sources said the investigation was related to a recent share placement. Company chairman Yim Fung could not be reached for comment last night.

Officers also executed a search warrant at the home of Wong Tung-ching, the company's chairman and executive director, the statement added.

"Wong was invited to visit the ICAC to assist in an investigation," the company said. No other director or employee was "taken away", it added.

Trading in the company's shares resumed yesterday after a two-day suspension pending the release of "price-sensitive information". Shares fell 7.6 per cent to close at HK$5.69.

Shanghai-based Guotai Junan Securities is one of the mainland's largest brokerages and asset managers.