Chinese firms Citic and Guotai Junan are planning to increase compliance staff in Hong Kong following a recent regulatory crackdown on investment banks in the city. The move comes amid increasing regulatory scrutiny over fundraising activities in the area. Hong Kong was the world's top listing venue last year, with equity fundraising surging 164% to $103 billion. The recent crackdown is expected to put more pressure on IPO sponsors and share placement agents to focus on due diligence and internal controls. Guotae Junan International is planning to hire a senior compliance manager to replace its former compliance head, who left the bank a month before the Hong Kong authorities raided the firm. Citic CLSA is adding at least three legal and compliance staffers, with two of them expected to cover regulatory matters and another focusing on the investment banking division.