Jane Street, one of the world's largest quant trading firms and market makers, is planning a sharp increase in Hong Kong office space, two people familiar with the matter said.

The New York-based firm is negotiating with landlord Hongkong Land to lease two more floors at Chater House, an office tower in Central, they said.

If the deal materialises, Jane Street will occupy six floors of the 30-storey building, totalling over 110,000 sq ft of office space, compared to just two-and-a-half floors a year ago.

Jane Street and Hongkong Land declined to comment.

Despite rising Sino-US tensions, China has regained popularity as an investment destination and Hong Kong's Hang Seng Index surged 15 percent in the first quarter.

Average daily turnover shot to US$28 billion for the first two months of the year, a 70 percent jump from the same time last year, data shows.

Citadel Securities and Tower Research Capital have also been recruiting and expanding their offices in Hong Kong.

Jane Street employs 400 people in the city, one of the people said, adding that its Hong Kong-based team covers not just the mainland and Hong Kong but also Japan, Singapore and Australia.

It is hiring for more than 40 roles in Hong Kong, the firm's website shows.

Known for high-frequency trading and its dominance of the exchange traded funds market, Jane Street has seen explosive growth in recent years.

It is a registered market maker on the Hong Kong bourse and was approved to trade yuan-denominated shares in Hong Kong in 2023.

The firm earned around US$6.1 billion in the first half of last year, nearly double that of the same period a year earlier, Bloomberg reported.

Jane Street plans to take the two floors used by Point72 Asset Management, according to one of the people.

Point72 is moving out because it wants more office space, local media have said. (Reuters)