Caixin: The third defendant in the insider trading case involving Futu and Tiger Brokers is Yang Jingyao of Rongzun International.

According to Caixin, the highly watched insider trading case involving US stock options of Futu Holdings and Tiger Brokers has previously seen two defendants emerge: an individual and an investment institution. Now, a third defendant has come forward to seek unfreezing of his assets. In a declaration submitted to a US court on July 23, the third defendant is Yang Jingyao, a Hong Kong resident since 2020. Yang stated, “My personal assets far exceed my personal debts” and “I have no outstanding debts to repay.” According to public filings of the Hong Kong Stock Exchange (HKEX), the largest single shareholder of Hong Kong-listed firm Rongzun International and the previous mandatory tender offeror also bears the name “Yang Jingyao.” HKEX documents show this Yang Jingyao is 32 years old, with his mother being a wealthy individual from the Chinese mainland. Described as a businessman and private investor, he has long invested in listed securities, IT companies, startups and other financial assets via brokers and wholly-owned private investment companies established in Hong Kong and the British Virgin Islands. However, there is currently no public evidence linking the securities accounts or funds covered by the US court’s restraining order to the failure of Rongzun International’s tender offer. On July 2, the US Securities and Exchange Commission (SEC) is investigating insider trading allegations filed by Hina Group. In a lawsuit submitted to the Manhattan Federal Court on June 29, Hina Group claimed that before Chinese regulators cracked down on cross-border brokerages including Futu and Tiger Brokers on May 22, unknown insiders had purchased US put options of Chinese brokerages in advance, reaping at least $100 million in profits at a cost of around $12 million.