Hong Kong's Chinese-funded brokerage first obtains virtual asset trading license

On June 25, 2025, Guotai Junan International Holdings Limited announced that its wholly-owned subsidiary Guotai Junan Securities (Hong Kong) Limited received approval from the Hong Kong Securities and Futures Commission on June 24 to upgrade its existing Type 1 (Securities Trading) regulated activity license to provide virtual asset trading services. This marks Guotai Junan International as the first Chinese-funded brokerage to be authorized to offer comprehensive virtual asset trading services in Hong Kong, opening a convenient channel for its clients to directly trade mainstream cryptocurrencies such as Bitcoin, Ethereum, and Tether.

After the news was released, the market reacted enthusiastically. The stock price of Guotai Junan International opened significantly higher, with an intraday peak increase of over 100%, fully reflecting investors' strong confidence in this strategic breakthrough. Driven by this, the stock price of Huashan Co., which holds 67.6 million circulating shares of Guotai Junan International, also rose, with an intraday increase of over 8%, demonstrating the market's widespread optimism towards the virtual asset trading sector.

Strategic Background of the Virtual Asset Market in Hong Kong

The recent license upgrade by Guotai Junan International is an important reflection of Hong Kong's proactive strategy to build a global core hub for virtual assets. Since adopting a cautious regulatory stance in 2017, Hong Kong released the "Hong Kong Virtual Asset Development Policy Declaration" in 2022, clearly outlining the strategic goal of establishing an Asian crypto asset center. In recent years, Hong Kong has implemented a series of measures, including a dual licensing mechanism to regulate virtual asset trading platforms, issuing the world's first government-backed tokenized green bonds, and approving the first batch of virtual asset spot ETFs in Asia, thereby establishing a regulatory framework for digital assets that balances innovation and risk prevention.

In February 2025, the Hong Kong Securities and Futures Commission released "A-S-P-I-Re" Opens a Bright Future: The Regulatory Roadmap for the Virtual Asset Market in Hong Kong, further clarifying the policy direction to support the development of the virtual asset market. In May, the passage of the Stablecoin Ordinance Draft was seen as a key step for Hong Kong to integrate into the global digital asset ecosystem, laying the foundation for its competitive advantage in cross-border payments and currency internationalization.

Against this backdrop, the breakthrough of Guotai Junan International is not only a milestone in the company's own development but also reflects the trend of traditional financial institutions actively responding to Hong Kong's policy direction and deeply participating in the virtual asset industry. Industry analysis points out that leveraging the innovative collaboration and open market advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong is accelerating the consolidation of its global virtual asset hub status. Traditional financial institutions are aligning with the trend of cryptocurrency integration into the financial ecosystem by strengthening their licensing layout and business expansion.

Improve the Virtual Asset Ecosystem Chain

Guotai Junan's license not only allows it to provide virtual asset trading services, but also to provide professional advice during the trading process, as well as to issue and distribute virtual asset-related products, including over-the-counter derivatives. This makes it the first Chinese-funded brokerage firm in Hong Kong to provide a full range of virtual asset trading services, covering multiple dimensions such as brokerage business, advisory services and product issuance.

In fact, Guotai Junan International has already started its layout in the virtual asset field. In 2024, the company took the lead in launching structured products based on virtual asset spot ETFs and was approved to conduct virtual asset trading platform introduction agent business. In the first half of 2025, the company further obtained permission to distribute tokenized securities to clients and provide relevant professional advice, while also launching the digital bond issuance business. This license upgrade has improved the ecosystem of virtual asset business, achieving a closed-loop layout from product design, trading services to consulting support.

Clients of Guotai Junan International will trade mainstream cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like Tether, directly through their platform, enjoying seamlessly integrated comprehensive account services. This innovation not only enhances the customer experience but also provides new momentum for the company to attract younger investors and strengthen its competitive position in the Hong Kong financial market.

Industry analysis suggests that more brokerages with international business subsidiaries are expected to complete the upgrade to Class 1 licenses in the future, entering the virtual asset trading service field and further improving the Hong Kong market ecosystem. Leading brokerages with a strong customer base entering the market will promote the continuous development of the cryptocurrency and virtual asset trading ecosystem in Hong Kong.

Globally, traditional financial institutions are entering the virtual asset industry with unprecedented breadth and depth. In the brokerage business sector, several securities companies have partnered with virtual asset trading platforms to offer clients cryptocurrency trading features. In the asset management sector, large international asset management firms have launched Bitcoin spot ETFs, and institutions in Hong Kong have developed new products such as tokenized currency funds. In the investment banking sector, multiple virtual asset companies have gone public, and the industry is experiencing active mergers and acquisitions, bringing new opportunities for brokerages.

Although the virtual asset market has a bright outlook, its high volatility also places higher demands on investors. The professional consulting services provided by Guotai Junan International will help clients better understand market dynamics and make rational investment decisions. The company also reminds shareholders and potential investors to exercise caution when buying and selling the company's securities.