JPMorgan Chase & Co. and UBS Group AG severed prime brokerage relationships with a Hong Kong-based investment firm just days before Hong Kong authorities raided the company's offices. The firms acted based on information from people familiar with the matter, indicating the move occurred well ahead of the investigation into alleged insider dealing becoming public knowledge. This preemptive action suggests heightened sensitivity to regulatory risks and reputational damage.

The hedge fund, now under intense scrutiny, faces potential collapse without its key banking partners.