(Bloomberg) -- Graftbusters arrested a former official responsible for vetting initial public offerings at the Hong Kong stock exchange, in what could become one of the city’s highest-profile clampdowns on alleged white-collar crime.

Hong Kong’s Independent Commission Against Corruption arrested Eugene Yeoh, the former joint head of the bourse’s IPO vetting team, according to people with knowledge of the matter, who asked not to be identified because the details haven’t been made public. Yeoh resigned from Hong Kong Exchanges & Clearing Ltd. in May due to family reasons, Bloomberg News reported at the time.

The ICAC said in a statement earlier Wednesday it had arrested a person with that title along with two associates, without naming any of them. They are suspected of corruption and misconduct related to the vetting of two listing applications, according to the statement. Yeoh didn’t answer phone calls seeking comment.

Hong Kong watchdogs are stepping up a campaign against corruption as the city’s bourse competes with New York to become a heavyweight listing destination. Alibaba Group Holding Ltd. is said to be considering what could be the city’s biggest share sale since 2010. The exchange is already one of Asia’s largest, home to major Chinese corporations like Tencent Holdings Ltd. but also a clutch of notoriously speculative and volatile stocks.

“Hong Kong by and large remains corruption-free and we still have confidence in the system,” said Gary Cheung, chairman of the Hong Kong Securities Association. “But HKEX should further strengthen their internal control and check and balance mechanism to avoid any improprieties.”

The anti-corruption agency said it conducted the operation with the Securities and Futures Commission and searched a number of other premises, including the offices of the two listed companies and a financial printing company.

HKEX confirmed that one former employee is involved, adding that neither the exchange nor any other staff was being investigated. The SFC said it wouldn’t comment beyond the release, while the ICAC couldn’t immediately be reached for comment after normal business hours.

The SFC also said it was conducting a specific review of HKEX’s administration of listing and matters relevant to the investigation.

To contact the reporters on this story: Benjamin Robertson in Hong Kong at brobertson29@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Cathy Chan in Hong Kong at kchan14@bloomberg.net

To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Edwin Chan, Ben Scent

©2019 Bloomberg L.P.