Hong Kong's Securities and Futures Commission (SFC) conducted raids on the offices of CCB International and China Securities International on May 27, seizing documents and electronic devices. This action is part of an investigation into suspected misconduct related to share offerings. This marks the second major enforcement action by the SFC in three months, following similar raids on Citic Securities and Guotai Junan International in March. The investigation focuses on potential misconduct in IPO sponsorships, a critical area where sponsors are responsible for due diligence and ensuring accurate disclosures. The SFC has been tightening oversight amid a surge in IPO activity in Hong Kong, particularly involving Chinese companies. The absence of public statements from the SFC or the firms involved leaves the severity of the allegations unclear, but the ongoing regulatory scrutiny suggests a broader crackdown on the brokerage sector.