Shares of Guotai Junan International experienced a remarkable surge of nearly 200% over a two-day period following the announcement that the Hong Kong-listed brokerage had obtained regulatory approval to initiate cryptocurrency trading services.
Key Takeaways:
Guotai Junan’s stock skyrocketed by 185% after receiving a cryptocurrency trading license in Hong Kong. The brokerage is now one of the first major Chinese entities to gain regulatory consent to provide crypto services. Hong Kong’s clear regulations are attracting traditional financial institutions to enter the digital asset arena, diverging from the stance taken by mainland China.
This dramatic increase in share price came after the Securities and Futures Commission (SFC) revealed on Wednesday that it had upgraded Guotai Junan’s Type 1 license, which previously allowed for securities dealing, thereby enabling cryptocurrency trading through an SFC-licensed virtual asset provider. The stock surged by 198% to HK$3.70 on Wednesday, hitting an intraday peak of HK$7.02 on Thursday, before closing at HK$3.54, reflecting an overall increase of 185% from the previous day.
Guotai Junan: First Chinese Broker Listed in Hong Kong
Established as a state-backed brokerage, Guotai Junan was the first Chinese securities firm to be publicly listed in Hong Kong through an IPO in 2010. The parent entity, Guotai Haitong Group, is under the control of a Shanghai government institution, according to corporate records from Qichacha.
The recent license upgrade enhances Guotai Junan’s standing among an emerging group of traditional financial firms eager to explore the regulated cryptocurrency environment in Hong Kong. Other brokerages, including China Merchants Securities and Huatai International, are also reportedly seeking similar approvals.
Guotai Junan International has received approval from Hong Kong regulators to offer virtual asset trading services. Following the license upgrade, clients can directly trade cryptocurrencies, including Bitcoin and Ethereum, and stablecoins, such as Tether, on its platform. pic.twitter.com/MKq6mAcEAo
— Yicai 第一财经 (@yicaichina) June 25, 2025
This development aligns with Hong Kong’s robust commitment to advancing its digital asset strategy. Just days ago, VMS Group, a Hong Kong multifamily office with a strong presence in private equity, made its first venture into digital assets, spurred by clearer regulations and increasing institutional interest in cryptocurrencies. The firm, managing nearly $4 billion for some of the city’s wealthiest families, intends to invest up to $10 million in Re7 Capital, a London-based hedge fund concentrating on decentralized finance.
While Hong Kong embraces crypto innovation, mainland China maintains its strict ban on cryptocurrency trading and mining, which positions the city as a pivotal testing ground for Chinese companies wishing to navigate the digital asset sphere within a regulated framework.
Hong Kong Announces New Digital Asset Policy
Hong Kong has introduced its second significant policy initiative regarding digital assets, placing a strong emphasis on the regulation of stablecoins and the tokenization of real-world assets (RWAs) as part of its ambition to become a leading global fintech hub. The new “LEAP” framework aims to ensure legal clarity, facilitate ecosystem growth, promote real-world adoption, and foster talent development. A licensing scheme for stablecoins is set to commence on August 1.
Additionally, the government intends to regulate tokenized government bonds and exchange-traded funds (ETFs), which will allow for secondary market trading of these products on licensed digital asset platforms. Plans to broaden tokenization efforts into diverse sectors, including metals and renewable energy, are also under consideration, highlighting applications such as gold and solar panels.
It has been noted that professionals in the crypto and hedge fund sectors are significantly contributing to Hong Kong’s residential rental market, which has been under pressure due to a decline in traditional demand sources.
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