Guotai Junan International Holdings Limited has become the first Chinese-backed securities firm in Hong Kong authorized to provide comprehensive virtual asset trading services. This landmark approval allows their clients to trade cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether, directly on the firm’s platform.
The announcement triggered a dramatic market response. The company’s stock price surged nearly 200% during trading, reaching a decade-high. This movement also strengthened the broader Hong Kong brokerage sector and reignited activity in A-share stablecoin-related concepts.
Industry experts highlight that this move positions Guotai Junan International at the forefront of a high-growth emerging market. Expanding into virtual asset services is expected to open new revenue streams, enhance the firm’s competitive edge among Chinese brokerages, and accelerate the industry’s broader adoption of digital asset services.
Hong Kong’s First Full Virtual Asset License for a Chinese Broker
On June 24th, Guotai Junan International announced it had received approval from the Securities and Futures Commission (SFC) of Hong Kong. This approval upgrades its existing securities trading license to include virtual asset trading services. The enhanced license also permits the firm to provide advice on virtual assets and to issue and distribute virtual asset-related products, including over-the-counter derivatives.
This regulatory milestone means clients can now directly trade a range of virtual assets through Guotai Junan International’s established platform.
As a leading institution in the internationalization of Chinese brokerages, Guotai Junan International was the first of its kind to IPO on the Hong Kong Stock Exchange. Its core business spans wealth management, brokerage, investment banking, lending and financing, asset management, and financial products.
The firm’s first-mover advantage in this domain stems from its proactive布局 (layout) in digital finance. In 2024, it pioneered the launch of structured products based on virtual asset spot ETFs in Hong Kong. It also received SFC authorization to operate as an introducing agent for virtual asset trading platforms. By the first half of 2025, the firm had secured the necessary approvals to distribute tokenized securities and advise on them, subsequently launching digital bond issuance业务 (business).
Securing the virtual asset trading service资格 (qualification) completes its ecosystem in this sector, solidifying its status as the first Chinese-backed securities firm in Hong Kong to offer a full suite of virtual asset-related trading services.
Looking ahead, the company stated it will continue to explore the deep integration of fintech and virtual asset businesses. It aims to enhance its product and service capabilities, contribute to Hong Kong's development as a vibrant international virtual asset center, and provide investors with a secure, compliant, and professional trading experience to capture new wealth growth opportunities.
As a traditional Chinese financial institution, its entry has undoubtedly intensified competition within Hong Kong's cryptocurrency market.
This enthusiasm quickly spread to the secondary market. Following the news, brokerage stocks in the Hong Kong market collectively strengthened on June 25th. Guotai Junan International's shares skyrocketed over 100% at the market open. After some pullback, the rally resumed in the afternoon with gains again exceeding 100%.
The stock continued to climb into the close, ending the day up 198%, leading gains across the brokerage sector. First Shanghai and Shenwan Hongyuan Group (HK) saw gains exceeding 30%, while more than ten other stocks, including Delin Holdings, rose over 10%.
Concurrently, the stablecoin concept within the A-share market, which had previously retreated, bottomed out and rebounded during the day.
By the close, Jingbeifang (002987.SZ) shot up and sealed a limit-up. Jiada Zhenguan (003029.SZ) achieved its third consecutive limit-up. Xinguodu (300130.SZ), Megait (300333.SZ), and Cuiwei Shares (603123.SH) all gained over 10%. Yuyin Shares (002177.SZ), Lakala (300773.SZ), and others also followed the upward trend.
Potential Reshuffle in Hong Kong’s Virtual Asset Intermediary Market
Operating virtual asset services as a brokerage or exchange requires licenses that are encompassed within Hong Kong's traditional regulatory framework.
Under current Hong Kong policy, key participants in virtual asset operations include trading platforms and brokers, providers of crypto spot and derivative assets, stablecoin-related issuers and custodians, and participants involved in the issuance, trading, investment, and management of virtual asset products. According to a CITIC Securities research report, the license system is broadly divided into four categories:
- Virtual Asset Trading Platforms (VATPs): Require a VASP license, supplemented by Type 1 (dealing in securities) and Type 7 (providing automated trading services) licenses. Platforms custoding client funds also need a Type 9 (asset management) license, and some may require a Type 4 (advising on securities) license.
- Stablecoin Issuance: Issuers will need a stablecoin issuance license. Custodians must be recognized banking institutions, adhering to a series of risk capital and other requirements.
- Virtual Asset Funds and Management: Requires SFC authorization compliance with related risk disclosure and rules, often involving an upgrade to a Type 9 license. These funds must be offered only to professional investors.
- Virtual Asset Trading: Only Type 1 licensed intermediaries can provide trading services for "security"-type virtual assets. These intermediaries are only permitted to partner with SFC-licensed VATPs and cannot allow clients to deposit or withdraw fiat currency from accounts held at the intermediary.
The SFC website confirms that "intermediaries licensed or registered for Type 1 and/or Type 4 regulated activities may provide virtual asset trading and/or advisory services to their existing clients."
Currently, 11 virtual asset trading platforms in Hong Kong have received formal approval from the SFC to conduct compliant virtual asset businesses.
It is reported that the SFC-licensed VATP partnering with Guotai Junan International is likely HashKey Exchange.
Numerous financial institutions in Hong Kong are now accelerating their布局 (layout) of virtual asset businesses, with several brokerages already having received relevant licenses.
Compared to the newly licensed Chinese brokers, Hong Kong local brokerages have a first-mover advantage in the virtual asset field. Firms like Tiger Brokers, Victory Securities, Interactive Brokers, and Futu Securities had already entered the market previously.
For licensed exchanges like OSL and HashKey, the entry of traditional brokerages with vast client bases and mature compliance systems could directly分流 (divert) traffic, increasing pressure on the exchanges. However, within the regulatory framework, both sides also face rich opportunities for collaboration.
Zhu Zhenyu, Sales Director of HashKey Exchange, noted that recent upgrades to the Type 1 licenses held by Chinese brokerages in Hong Kong are enabling their entry into the virtual asset market. He mentioned that these firms are employing diversified product strategies, differentiated customer service, and partnerships with other licensed firms or fintech companies.
Zhu stated that HashKey Exchange, as Hong Kong's largest licensed virtual asset exchange, has established deep cooperative relationships with multiple brokerages, including top-tier Chinese ones. Many brokerages have completed license upgrades, system integrations, and agreement signings, and are soon to officially launch virtual asset services. Through its Omnibus brokerage business, HashKey provides virtual asset deposit and withdrawal functionalities for the investors of these partner brokerages.
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Chinese Brokers Set to Expand into Virtual Asset Markets
With Guotai Junan International leading the way, major Chinese securities firms are poised to expand into the virtual asset trading market, including cryptocurrencies and stablecoins.
Among Chinese brokerages, leading firms with international subsidiaries, such as CITIC Securities and Haitong International, are closely monitoring the situation and are expected to accelerate their own business布局 (layouts) in this area. Institutional sources suggest that more Chinese institutions are likely to complete their license upgrades within the next 1-2 years.
A representative from CITIC Securities indicated that the company is currently laying out its virtual asset-related businesses. An internal source from Xingye Securities' subsidiary, Xingzheng International Financial Group, noted that the company has taken note of the market's fervor and held discussions on the matter on the morning of June 25th, with specific measures still under study.
A relevant person from Guolian Minsheng stated that the company's Hong Kong subsidiary has understood the application process for the business and is preparing application materials, planning to immediately apply for the same trading qualification recently obtained by Guotai Junan International.
However, considering factors like the scale of international operations and regulatory prudence, the follow-up speed of small and medium-sized brokerages may lag significantly behind that of larger institutions.
A representative from a mid-sized brokerage mentioned that their company has not yet engaged in virtual currency-related业务 (business) due to its high sensitivity. Another person from a mid-sized brokerage stated that obtaining virtual asset trading service approval, similar to Guotai Junan International, would likely be a slow process at their firm. Some smaller brokerages admitted they have not even ventured into overseas securities business, let alone the cryptocurrency market.
CITIC Securities' research report suggests that Chinese brokerages can develop businesses across multiple dimensions of the virtual asset industry chain, including brokerage, equity investment, trading and investment services, investment banking, and asset management.
Regarding the brokerage business involved in Guotai Junan International's case, firms can provide investors with channels to buy and sell cryptocurrencies and deposit/withdrawal services by partnering licensed virtual asset exchanges or using their own platforms, effectively linking traditional securities accounts with virtual asset trading.
For example, Futu Securities partnered with HashKey, and Interactive Brokers partnered with OSL Group, beginning to support cryptocurrency trading in August 2024 and February 2023, respectively. Robinhood began supporting crypto trading in the US as early as 2018.
Furthermore, for the average investor, the accelerated entry of Chinese brokerages意味着 (means) the barrier to compliant cryptocurrency trading is significantly lowered. There's no need to open a separate exchange account; operations can be conducted within a familiar securities app. This provides a safer, more transparent trading channel and reduces the difficulty of participation.
Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated that the entry of traditional brokerages signifies the gradual integration of virtual assets into the mainstream financial system. Investors can access cryptocurrency investment advice and risk management tools (like OTC derivatives) through familiar securities platforms, thereby reducing speculative risks and promoting a market transition from "retail-dominated" to "institutionalized and diversified."
Frequently Asked Questions
What does Guotai Junan International's new license allow it to do?
This license upgrade from the Hong Kong SFC permits them to offer virtual asset trading services directly to their clients. This includes facilitating trades for cryptocurrencies and stablecoins, providing investment advice on these assets, and issuing related financial products like derivatives.
Why did the company's stock price increase so dramatically?
The market perceived this first-mover approval as a significant competitive advantage, opening access to the high-growth virtual asset market. Investors anticipate this will create new revenue streams and strengthen the firm's long-term position, leading to a sharp rise in its stock value.
How does this impact individual investors in Hong Kong?
Individual investors now have a new, compliant channel to trade virtual assets through a well-established, traditional securities brokerage. This integrates crypto trading into familiar platforms, potentially offering enhanced security, convenience, and access to professional advice compared to standalone crypto exchanges.
What are the main types of virtual asset licenses in Hong Kong?
The key licenses include the VATP license for trading platforms, upcoming stablecoin issuer licenses, and upgrades to existing financial licenses (like Type 1 for securities dealing) that allow traditional firms to offer virtual asset services under specific conditions.
Will other major Chinese brokerages follow suit?
Yes, industry analysts expect other large Chinese brokerages with international operations, such as CITIC Securities and Haitong International, to actively pursue similar license upgrades and launch their own virtual asset service offerings in the near future.
Is trading virtual assets through a brokerage safer than using an exchange?
Trading through a licensed and well-regulated brokerage can offer additional layers of investor protection, compliance oversight, and integration with traditional financial services. However, the underlying volatility and risks associated with virtual assets themselves remain.