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Hong Kong has introduced its first AI policy for finance and is considering tax breaks for virtual assets to position itself as a leading Asian business hub. The government aims to create a common framework for regulating AI use across different sectors and plans to extend tax breaks for digital assets like cryptocurrencies. Hong Kong is also focusing on developing its own AI capabilities to address challenges posed by US-China technology conflicts and is working on initiatives to support the local financial services industry with AI technologies. [Extracted from the article]

Hong Kong authorities plan to issue more licenses to digital-asset exchanges by the end of 2024, following a five-month inspection period. The Securities and Futures Commission will publish a list of platforms transitioning from provisional permits to full licenses by year-end. The city aims to establish itself as a digital-asset hub, but the approval process has been slower than anticipated, with only three platforms fully licensed so far. The SFC found unsatisfactory practices at some firms during inspections, prompting the implementation of changes before granting restricted licenses. Additionally, Hong Kong Exchanges and Clearing Ltd. will introduce a Virtual Asset Index Series to offer more benchmarks for Bitcoin and Ether pricing in the Asia-Pacific region. [Extracted from the article]

Hong Kong's stock exchange, Hong Kong Exchanges & Clearing Ltd., saw a 7% increase in third-quarter profit due to a surge in investment income. The results were higher than analysts' estimates, and the exchange is expected to benefit further from China's recent economic stimulus measures. Trading volumes have doubled, and the exchange's share price has risen significantly since the market support measures were implemented. Additionally, money raised through IPOs tripled in the third quarter, and the exchange plans to expedite the IPO vetting process to facilitate new listings. [Extracted from the article]

Hong Kong's stock exchange, Hong Kong Exchanges & Clearing Ltd., saw a 7% increase in third-quarter profit due to a surge in investment income, reaching HK$3.145 billion. This exceeded analysts' estimates and is expected to rise further in the current quarter following China's stimulus measures. The market's vibrancy and diversity were highlighted by increased trading volumes and a 30% surge in HKEX's share price since China's market support measures were implemented on Sept. 23. [Extracted from the article]

Hong Kong is set to host a high-profile summit for top bankers in an effort to enhance its global financial hub status. Over 300 attendees, including prominent figures like JPMorgan Chase & Co. President Daniel Pinto and Citigroup Inc. CEO Jane Fraser, are expected to participate in discussions on investing in Asia and the future of finance. The summit, organized by the Hong Kong Monetary Authority, aims to showcase the city's importance in global finance, especially in light of recent political and economic challenges. [Extracted from the article]

Hong Kong is set to host a summit for top bankers in an effort to boost its status as a global financial hub. Over 300 attendees are expected, including CEOs from major financial institutions like JPMorgan Chase, Morgan Stanley, Citigroup, and Goldman Sachs. The summit will focus on topics such as investing in Asia, private markets, and navigating a complex world. The event is seen as a key indicator of Hong Kong's importance in global finance, especially in light of recent political and economic challenges. [Extracted from the article]

Hong Kong's long-serving markets regulator, Keith Choy, is reportedly stepping down after 26 years with the Securities and Futures Commission. Choy oversaw a significant number of licensed financiers and firms in the city's $5.5 trillion market. His departure comes amidst other changes at the SFC, including the replacement of Chairman Tim Lui with Kelvin Wong. [Extracted from the article]

Hong Kong has announced plans to streamline the IPO vetting process to approximately 100 days, aiming to provide a clear timeline for initial public offering applicants. The stock exchange and regulator will limit question-and-answer sessions to two rounds within 40 business days for companies meeting listing requirements. This move comes as IPO activity picks up following economic stimulus measures in China, with the goal of enhancing the global competitiveness of Hong Kong's capital markets. The new timeline does not apply to applications with complex regulatory implications or questionable quality. [Extracted from the article]

Hong Kong is taking steps to stimulate its economy by easing mortgage rules and cutting liquor taxes. The government hopes these measures will boost transaction volumes and stimulate nightlife, which has been struggling due to a slowdown in domestic spending and fewer tourists post-Covid. While these efforts may not fully reverse the downward trend in the market, they are part of a broader strategy to revitalize the economy. [Extracted from the article]

Hong Kong plans to relax housing rules and reduce liquor taxes to stimulate economic growth amid China's slowdown. Chief Executive John Lee aims to boost the real estate sector by increasing loan amounts for homebuyers and expanding residency-by-investment programs. The city's economy has faced challenges due to fewer tourists and weak sentiment, prompting these measures to support the services sector. The government's efforts to attract wealthy individuals and stimulate luxury property transactions may provide some relief, alongside recent stimulus measures by Beijing and interest rate cuts by the US Federal Reserve. [Extracted from the article]

Hong Kong is implementing measures to support its real estate sector and boost spending, including loosening mortgage rules and cutting an alcohol tax. Chief Executive John Lee aims to stimulate the economy amidst China's slowdown, with a focus on the struggling property market. The city's economy has faced challenges such as falling real estate prices and sluggish consumption, prompting the government to take action to attract investment and support local businesses. [Extracted from the article]

Hong Kong plans to expand a program to attract wealthy individuals who purchase luxury homes, aiming to support the real estate sector and maintain its status as a global hub. Chief Executive John Lee announced that the migration program will now include property purchases as part of the required investment, with a lower tax on spirits also introduced to boost spending. The city's economy has faced challenges due to falling real estate prices and sluggish consumption, prompting efforts to attract investors and diversify the economy through measures such as revamping an Innovation and Technology Venture Fund. [Extracted from the article]

Hong Kong plans to expand a program to attract wealthy migrants who purchase luxury homes, aiming to support the city's status as a hub and boost the real estate sector. Chief Executive John Lee announced the expansion, which includes lowering liquor taxes to stimulate spending and support the struggling service industry. The city's economy has faced challenges, including falling real estate prices and sluggish consumption, but efforts are being made to attract investors and diversify the economy through initiatives like the Innovation and Technology Venture Fund. [Extracted from the article]

Hong Kong plans to expand a program to attract wealthy migrants who purchase luxury homes, aiming to support the city's status as a hub and boost the real estate sector. Chief Executive John Lee announced that property purchases valued at HK$50 million or above would fulfill a third of the required HK$30 million investment for migration. The city's economy has shown growth within the forecast range, but challenges such as falling real estate prices and sluggish consumption persist. To address these issues, Hong Kong is considering lowering taxes on spirits to stimulate sales and is looking to diversify the economy by revamping an Innovation and Technology Venture Fund. [Extracted from the article]

Hong Kong's Chief Executive, John Lee, is expected to focus on boosting the city's economy in his upcoming policy speech. This includes the possibility of cutting a liquor tax to support the nightlife and dining industry. The city's economy has grown within the official forecast range, but falling real estate prices and sluggish consumption have affected sentiment. Lee's administration has taken steps to support the real estate market, and there are plans to attract more investors by revamping an Innovation and Technology Venture Fund. Measures to diversify the economy, such as boosting the medical and biotechnology sector, are also being considered. [Extracted from the article]

Kelvin Wong has been appointed as the new chairman of the Securities and Futures Commission (SFC) in Hong Kong for a three-year term. Wong, who currently serves as chairman of the Accounting and Financial Reporting Council, will assume his new role on October 20. He will succeed Tim Lui, who completed six years as chairman. Wong has extensive experience in the financial services industry, securities and futures markets, capital market development, corporate governance, and financial regulatory matters. He will continue as chairman of the AFRC until December 31 in an unusual dual capacity arrangement. Wong previously served on the SFC board as a non-executive director and was also an executive director and deputy managing director of COSCO Shipping Ports Ltd. Wong is an Erhu player and an adviser to the Hong Kong Chinese Orchestra. Under his chairmanship, the SFC will oversee the 10th anniversary of Stock Connect, a trading link between the Chinese and Hong Kong markets. The SFC is the primary regulator of Hong Kong's stock market, which has recently seen high daily turnover. [Extracted from the article]

Kelvin Wong has been appointed as the new chairman of the Securities and Futures Commission (SFC) in Hong Kong for a three-year term. Wong, who currently serves as chairman of the Accounting and Financial Reporting Council, will assume his new role on October 20. He will succeed Tim Lui, who completed six years as chairman. Wong has extensive experience in the financial services industry, securities and futures markets, capital market development, corporate governance, and financial regulatory matters. He will continue as chairman of the AFRC until December 31 in an unusual dual capacity arrangement. Wong previously served on the SFC board as a non-executive director and was also an executive director and deputy managing director of COSCO Shipping Ports Ltd. Wong is an Erhu player and an adviser to the Hong Kong Chinese Orchestra. Under his chairmanship, the SFC will oversee the 10th anniversary of Stock Connect, a trading link between the Chinese and Hong Kong markets. The SFC is the primary regulator of Hong Kong's stock market, which has recently seen high daily turnover. [Extracted from the article]

Pictet Asset Management Hong Kong Ltd. has increased its holding in China Construction Bank shares to 8.32% from 0.01%, according to a disclosure from the Hong Kong Exchange. The Swiss asset manager acquired a long position in the Chinese lender, either as the holder of or through equity derivatives. The transaction involved 20 billion Hong Kong-listed China Construction Bank shares at an average price of HK$6.06 ($0.78). Chinese shares have seen a significant increase in value recently due to various economic and market-support measures. CCB's shares have risen by 33% this year. [Extracted from the article]

Pictet Asset Management Hong Kong Ltd. has increased its holding in China Construction Bank shares to 8.32% from 0.01%, according to a disclosure from the Hong Kong Exchange. The Swiss asset manager acquired a long position in the Chinese lender, either as the holder of or through equity derivatives. The transaction involved 20 billion Hong Kong-listed China Construction Bank shares at an average price of HK$6.06 ($0.78). Chinese shares have seen a significant increase in value recently due to various economic and market-support measures. CCB's shares have risen by 33% this year. [Extracted from the article]

Former head of the Hong Kong stock exchange, Charles Li, has launched an exchange in Macau called Micro Connect Ltd. The exchange aims to list Chinese micro businesses and has already listed 39 small firms. The trading platform follows similar rules to traditional finance but takes into account the specific needs of smaller firms. Companies with a minimum annual revenue of 5 million yuan and a one-year operating track record are eligible to apply for a listing. The exchange also debuted 25 funds managed by private equity and venture capital firms. Micro Connect spent its own capital to establish the model and has recovered a portion of the funds invested. The firm was valued at $1.7 billion after its latest funding round in 2023. However, the business model has faced criticism for resembling peer-to-peer lending, and there have been calls for regulation to avoid negative consequences. [Extracted from the article]

The Hong Kong government is preparing to release its first policy statement on the use of artificial intelligence (AI) in finance. The statement will provide guidelines on the ethical use of AI and general principles for applying the technology in the finance industry. The government aims to signal its support for AI and address the confusion surrounding its use in Hong Kong. The policy statement is expected to be unveiled in late October during Fintech Week. Hong Kong is seeking to position itself as a financial center and attract foreign investors amid concerns about Beijing's control. Wall Street is also exploring how AI can reshape financial operations. The policy statement will provide broad direction and is not immediately enforceable, but it suggests that regulators will adopt a favorable attitude towards AI applications and release more concrete rules in the future. The statement will consolidate existing guidance from individual banking and securities regulators and will be separate from the government's technology bureau's efforts to develop its own AI tools. Some Hong Kong financiers have expressed concerns about the difficulty of accessing AI services and regulatory uncertainties. American companies like OpenAI and Google do not make their chatbots available in Hong Kong, while those from Chinese tech giants like Baidu and ByteDance can be difficult to use. However, workarounds such as using VPNs or Microsoft's tools are available. The Hong Kong Monetary Authority and Cyberport have launched a regulatory sandbox for banks to test new AI use cases, but it is unclear when regulations will permit these applications in real-world scenarios. The new AI guidelines are [Extracted from the article]

PricewaterhouseCoopers (PwC) is facing a probe into its Hong Kong business following a record fine in China over its audit of China Evergrande Group. The Accounting and Financial Reporting Council in Hong Kong is currently reviewing PwC's local practice. PwC was fined 441 million yuan ($62 million) and suspended for six months in China after authorities found that Evergrande had inflated its revenue by 564 billion yuan, making it one of China's largest accounting frauds. PwC also faces a lawsuit in Hong Kong filed by Evergrande's liquidators. The probes and legal proceedings could have a significant impact on PwC's business in China. [Extracted from the article]

Hong Kong's securities watchdog, the Securities and Futures Commission (SFC), is planning to release revised market sounding guidelines by the end of the year. The new guidelines will focus on publicly listed securities and will shift the responsibility for preventing the abuse of pre-deal confidential information to banks and brokers. The SFC has been engaging in private conversations with industry participants to fine-tune the guidelines further. The aim is to prevent the sharing of confidential information prior to market-moving deal announcements and to revive Hong Kong's financial hub status. The guidelines will also be shared with the International Organization of Securities Commissions to align with other regulators. [Extracted from the article]

The Hong Kong stock exchange is launching weekly options on the Hang Seng Tech Index, which includes stocks like Alibaba and JD.com. This move is part of the exchange's efforts to boost trading and liquidity in a market that has been struggling in recent years. The introduction of these options is expected to provide better price discovery and more flexibility for investors. The Hong Kong exchange has been expanding its derivatives offerings, with futures and options trading seeing consistent growth. The expansion of weekly options is aimed at diversifying investment options for retail and institutional investors. [Extracted from the article]

Hong Kong's plan to become a digital-asset hub is facing challenges as 11 crypto exchanges that received initial approvals are uncertain about obtaining full licenses. The city's Securities and Futures Commission found unsatisfactory practices during on-site inspections, including over-reliance on a few executives and inadequate protection against cybercrime risks. The specific exchanges that fell short of requirements are unknown as the inspections are ongoing. The licensing process is part of Hong Kong's efforts to restore its appeal as a financial hub, but it has struggled to generate significant personnel shifts or capital inflows. Only two platforms, OSL and HashKey, are currently fully licensed in Hong Kong. [Extracted from the article]

The Hong Kong stock exchange reported a 9% increase in profit for the second quarter, driven by higher trading volumes. The exchange's net income reached HK$3.16 billion ($406 million), falling slightly short of analysts' estimates. The rise in profit was attributed to increased market momentum and trading activity, as well as a boost in initial public offerings. The average daily trading volume of equities rose by 23% in the quarter, and trading via the Stock Connect to China's exchanges also saw significant growth. Despite the positive results, the exchange's shares declined by 2.2%. [Extracted from the article]

The Hong Kong stock exchange reported a 9% increase in profit for the second quarter, driven by higher trading volumes. The net income for Hong Kong Exchanges & Clearing Ltd. rose to HK$3.16 billion ($406 million), falling slightly short of analysts' estimates. The CEO, Bonnie Chan, attributed the strong performance to increased market momentum and trading activity. This is the first full quarter with Chan at the helm, and she is benefiting from a rise in initial public offerings, partly due to supportive measures from Chinese regulators. The average daily volume of cash equities trading also saw a significant increase of 23% during the quarter. [Extracted from the article]

Hong Kong tycoon Adrian Cheng, CEO of New World Development Co., believes that Hong Kong will become the top destination for family offices in the future. The city has set up the Hong Kong Academy for Wealth Legacy to promote itself as a global hub for the super-rich. Hong Kong currently has over 2,700 single family offices, with about a third managing at least $100 million in assets. The city is trying to regain its status as a global financial hub after facing Covid-19 restrictions and a crackdown on political dissent. Singapore has benefited from this situation and has become a popular base for family offices. Hong Kong has introduced tax and residency incentives to attract more money management firms, but it faces challenges such as geopolitical risks and Beijing's crackdown on billionaires. The Hong Kong academy aims to be a "super connector" for family offices and will hold a summit next month. Family offices managing over HK$240 million ($30.8 million) are exempt from profit taxes on their qualified financial investments. Hong Kong is also trying to establish itself as a top global venue for trading and storing art. Cheng is one of the heirs of a prominent real estate clan and believes that Hong Kong's advantage lies not only in its capital but also in its values. [Extracted from the article]

A former Citigroup trader in Hong Kong, Cindy Lui, is suing the bank for wrongful dismissal in 2019. This lawsuit is part of a larger saga that led to regulators imposing a $44.6 million fine on Citigroup in 2022. Lui is seeking compensation for lost job opportunities and accrued pension benefits. The dispute revolves around whether there was a natural buyer for Tencent Holdings Ltd. shares in 2018. Citigroup alleges that Lui misrepresented the trade, while Lui denies deliberate misrepresentation and blames internal control failures. The trial has concluded, with a further hearing scheduled for September 27. [Extracted from the article]

A former Citigroup trader in Hong Kong, Cindy Lui, is suing the bank for wrongful dismissal in 2019. This lawsuit is part of a larger saga that led to a $44.6 million fine imposed on Citigroup by regulators in 2022. Lui is seeking compensation for lost job opportunities and accrued pension benefits. The dispute revolves around whether there was a natural buyer for Tencent Holdings Ltd. shares in 2018. Citigroup alleges that Lui misrepresented the trade, while Lui denies deliberate misrepresentation and blames internal control failures. A decision on the case will be handed out on August 27. [Extracted from the article]

Hong Kong's government has reappointed Eddie Yue as the head of the city's central bank for another five-year term. Yue, who has been in this position since 2019, is responsible for maintaining the stability of Hong Kong's currency peg to the US dollar. He has also taken on a larger role as the face of Hong Kong's banking community, as the city's status as a global financial hub has been questioned due to a decline in business and increased political control from Beijing. Yue, who previously worked as a bank teller, is committed to safeguarding monetary and financial stability. [Extracted from the article]

A Hong Kong court has handed down the longest ever jail sentences for market manipulation, with two defendants receiving six years and eight months of prison time. The case involved false trading in Ching Lee Holdings Ltd, resulting in illicit profits of over HK$124 million ($15.9 million). The judge stated that the lengthy sentences were necessary to send a strong message to the investing public and protect Hong Kong's reputation as a global financial center. This case also marked the first jury win for the Securities and Futures Commission in a market manipulation case. The SFC is increasing its enforcement of market misconduct, with an upcoming insider trading case involving Segantii Capital Management. [Extracted from the article]

Hong Kong's de facto central bank, the Hong Kong Monetary Authority (HKMA), has announced plans to introduce a licensing regime for stablecoin issuers. Under this regime, stablecoin issuers that track fiat currencies will need to obtain a license from the HKMA and publish monthly attestations on reserve assets conducted by a third-party auditor. The proposed rules aim to strengthen Hong Kong's regulatory framework for virtual assets and are part of the city's efforts to position itself as a digital-asset hub. The legislation on the new rules will be reviewed by lawmakers later this year. [Extracted from the article]

Hong Kong's audit regulator, the Accounting and Financial Reporting Council, has stated that it found no evidence to support the allegations made against PricewaterhouseCoopers (PwC) in an anonymous whistleblower letter that circulated on social media in April. The allegations included claims that PwC had failed to establish effective quality controls, adhere to professional standards in its client relationship with China Evergrande Group, and assign appropriate personnel to key positions. The regulator is still conducting a separate investigation into PwC's audits of Evergrande. PwC has denied the allegations and reported the letter to relevant authorities. The firm is currently facing pressure and a potential record fine from Chinese authorities over its audit work on Evergrande, and it has been cutting staff across its China operations. Raymund Chao, who was mentioned in the letter, retired in June and was succeeded by Daniel Li. [Extracted from the article]

Hong Kong's audit regulator, the Accounting and Financial Reporting Council, has stated that it found no evidence to support the allegations made against PricewaterhouseCoopers (PwC) in an anonymous whistleblower letter that circulated on social media in April. The allegations included claims that PwC had failed to establish effective quality controls, adhere to professional standards in its client relationship with China Evergrande Group, and assign appropriate personnel to key positions. The regulator is still conducting a separate investigation into PwC's audits of Evergrande. PwC has denied the allegations and reported the letter to relevant authorities. The firm is currently facing pressure and a potential record fine from Chinese authorities over its audit work on Evergrande, and it has been cutting staff across its China operations. Raymund Chao, who was mentioned in the letter, retired in June and was succeeded by Daniel Li. [Extracted from the article]

The insider dealing case against hedge fund firm Segantii Capital Management, its founder Simon Sadler, and former trader Daniel La Rocca has been adjourned to October 15th. The defendants have requested to review unused materials related to the case. The Securities and Futures Commission of Hong Kong has accused the trio of trading $1.14 million worth of shares of fashion retailer Esprit Holdings Ltd. based on inside information. The case is one of the city's highest-profile legal actions against a major hedge fund firm. [Extracted from the article]

The insider dealing case against hedge fund firm Segantii Capital Management, its founder Simon Sadler, and former trader Daniel La Rocca has been adjourned to October 15. The defendants requested unused material and evidence related to the case at a Hong Kong District Court hearing. The Securities and Futures Commission accused the trio of trading $1.14 million worth of shares of Esprit Holdings Ltd. based on inside information. The case is one of the highest-profile legal actions against a major hedge fund firm in Hong Kong. [Extracted from the article]

Middle East sovereign wealth funds invested $2.3 billion in the greater China market in 2023, a significant increase from the previous year. This influx of capital is seen as important because it has a positive impact on the local industry and the general public, according to Kenneth Hui of the Hong Kong Monetary Authority. Hong Kong has been actively seeking funding from Saudi Arabia and other Middle Eastern countries to revitalize its stock market, which experienced a decline in initial public offerings due to market volatility and tensions between China and the US. [Extracted from the article]

Nasdaq is increasing its scrutiny of small initial public offerings (IPOs) from China and Hong Kong to prevent the wild swings that occurred after a few deals two years ago. The exchange has been asking IPO applicants from these regions questions about the identity and independence of the firms' pre-IPO investors. This increased scrutiny has lengthened the IPO process and added uncertainty and costs. Despite this, Nasdaq remains an attractive alternative for Chinese and Hong Kong firms due to its low listing threshold, cost, time required, and certainty from the disclosure-based system. [Extracted from the article]

Nasdaq is increasing its scrutiny of small initial public offerings (IPOs) from China and Hong Kong to prevent the wild swings that occurred after a few deals two years ago. The exchange has been asking IPO applicants from these regions questions about the identity and independence of the firms' pre-IPO investors. This increased scrutiny comes as more small firms from China and Hong Kong turn to Nasdaq for funding. While no IPOs have been halted, the process has been lengthened, adding uncertainty and costs. Nasdaq is seeking to ensure investor independence and that US-based investors make up the majority of these IPOs. [Extracted from the article]

Nasdaq is increasing its scrutiny of small initial public offerings (IPOs) from China and Hong Kong to prevent the wild swings that occurred after a few deals two years ago. The exchange has been asking IPO applicants from these regions questions about the identity and independence of the firms' pre-IPO investors. This increased scrutiny comes as more small firms from China and Hong Kong turn to Nasdaq for funding. While no IPOs have been halted, the process has been lengthened, adding uncertainty and costs. Nasdaq is seeking to ensure investor independence and that US-based investors make up the majority of these IPOs. [Extracted from the article]

Hong Kong will no longer close its markets during typhoons and major storms starting on September 23. This decision comes after recognizing that other cities allow trading in extreme weather and that markets can function during the pandemic. The change was pushed by the local government, although some smaller brokers opposed it due to costs and difficulties in remaining open. The Hong Kong stock exchange will provide support arrangements for brokers that need help during the transition period. The decision to close markets during severe weather also received criticism for disrupting flows through Stock Connect, which links to markets in Shanghai and Shenzhen. [Extracted from the article]

Hong Kong will no longer close its markets during typhoons and major storms starting on September 23. This decision comes after recognizing that other cities allow trading during extreme weather and that markets can function during the pandemic. The change was supported by the local government, although some smaller brokers opposed it due to costs and difficulties in remaining open. The decision is seen as a positive development for the Hong Kong market, removing uncertainty about access to market and liquidity. However, the trading halt during severe weather also received criticism for disrupting flows through Stock Connect, which links to markets in Shanghai and Shenzhen. [Extracted from the article]

Hong Kong will no longer close its markets during typhoons and major storms starting on September 23, ending a long-standing practice. Chief Executive John Lee stated that there was broad support for this change, as other cities already allow trading in extreme weather. The decision was made in light of the pandemic, which showed that markets can function even when most workers are at home. The change was pushed by the local government, although some smaller brokers opposed it due to costs and difficulties in remaining open. The trading halt during severe weather also received criticism because it disrupts flows through Stock Connect, which links to markets in Shanghai and Shenzhen. [Extracted from the article]

Hong Kong will no longer close its markets during typhoons and major storms starting on September 25, according to Chief Executive John Lee. This decision comes after recognizing that other cities allow trading during extreme weather and that markets can function during the pandemic. The change was pushed by the local government, despite opposition from smaller brokers due to costs and difficulties in remaining open. The trading halt also received criticism for disrupting flows through Stock Connect, which links to markets in Shanghai and Shenzhen. [Extracted from the article]

Segantii Capital Management's insider trading case will be transferred to a Hong Kong District Court, which has the authority to impose longer prison sentences. The hedge fund, along with its founder and a former trader, is accused of acting on insider information prior to a block trade in 2017. The alleged inside information was received from a person connected to Esprit Holdings Ltd., and Segantii sold about $1.14 million worth of Esprit shares before the block trade. The case will be handled by Hong Kong's Department of Justice, and Segantii has decided to wind down its hedge fund in light of the legal action. [Extracted from the article]