Hong Kong's Securities and Futures Commission and the Independent Commission Against Corruption conducted a joint operation, codenamed "Fuse," targeting suspected insider dealing and corruption at licensed financial firms, according to a Thursday press release.

Eight people were arrested, including senior executives from two securities firms and a hedge fund management firm.

Authorities searched 14 locations, including offices of licensed corporations and suspects' residences, during the March 10-11 operation, the regulators said.

Investigators suspect senior executives at the two securities firms accepted more than HK$4 million in bribes from the owner of a hedge fund management firm in exchange for confidential information on share placements of Hong Kong-listed companies before the deals were publicly announced.

Using the information, the hedge fund allegedly built short positions in the stocks through short selling and equity swap contracts, generating about HK$315 million in profit after the placements were announced and share prices fell.

The investigation remains ongoing, the regulators said.