Guotai Junan International becomes the first Chinese brokerage firm authorized to provide virtual asset trading services.

On June 25, 2025, a well-known Chinese-funded brokerage in Hong Kong announced that its wholly-owned subsidiary had obtained the approval of the Hong Kong Securities and Futures Commission to upgrade its existing Type 1 (Securities Trading) regulated activity license to provide virtual asset trading services. This marks the company as the first Chinese-funded brokerage authorized to offer comprehensive virtual asset trading services in Hong Kong, opening a convenient channel for its clients to directly trade mainstream cryptocurrencies and stablecoins such as Bitcoin, Ethereum, and Tether.

After the announcement, the market reacted enthusiastically. The company's Hong Kong stock price surged over 80% at the opening, with an intraday peak increase of more than 100%, fully reflecting investors' strong confidence in this strategic breakthrough.

Driven by this, the stock price of another listed company that holds a large number of circulating shares of the company also responded with a rise, with an intraday increase of more than 8%, indicating 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 is an important embodiment of Hong Kong's strategy to actively build a global virtual asset hub. After adopting a cautious regulatory stance in 2017, Hong Kong released a relevant policy declaration in 2022, clearly stating its strategic goal of building an Asian cryptocurrency 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 bond, 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 regulatory roadmap, further clarifying the policy direction to support the development of the virtual asset market. In May, the passage of the "Stablecoin Regulation Draft" was seen as a key step for Hong Kong to integrate into the global digital asset ecosystem, laying the foundation for it to gain an advantage in cross-border payment and currency internationalization competition.

Against this background, the breakthrough of this Chinese-funded brokerage is not only a milestone in the development of the enterprise itself 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. Analysis indicates 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

The license approved this time not only allows the company to provide virtual asset trading services but also includes offering professional advice during the trading process, as well as issuing and distributing virtual asset-related products, including over-the-counter derivatives. This makes it the first Hong Kong-based Chinese broker capable of offering comprehensive virtual asset trading services, covering multiple dimensions such as brokerage, consulting services, and product issuance.

In fact, the company has already started its layout in the field of virtual assets. In 2024, the company was the first to launch structured products based on virtual asset spot ETFs and was authorized to engage in virtual asset trading platform introduction agency services. In the first half of 2025, the company further obtained permission from the Hong Kong Securities and Futures Commission to distribute tokenized securities to clients and provide related professional advice, while also launching its digital bond issuance business. This license upgrade has become a key link in the virtual asset business ecosystem, achieving a closed-loop layout from product design, trading services to consulting support.

Customers of the company will trade mainstream cryptocurrencies and stablecoins directly through its 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 young investors and consolidate its competitive position in the Hong Kong financial market.

Industry analysis suggests that in the future, more brokers with subsidiaries engaged in international business are expected to upgrade to Class 1 licenses, entering the virtual asset trading service sector, thus further improving the ecosystem of the Hong Kong market. Leading brokers 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 sector, many securities firms have partnered with virtual asset trading platforms to offer cryptocurrency trading functionalities to their clients. In asset management, internationally renowned asset management companies have launched Bitcoin spot ETFs, and institutions in Hong Kong have developed new products such as tokenized currency funds. In investment banking, virtual asset companies are going public one after another, and industry mergers and acquisitions are active, bringing new opportunities for brokerages.

Although the virtual asset market has great prospects, its high volatility also imposes higher demands on investors. The professional consulting services provided by the company will help clients better understand market dynamics and make rational investment decisions. The company also reminds shareholders and potential investors to act prudently when buying and selling the company's securities.