The first Chinese-funded brokerage in Hong Kong has been approved to provide virtual asset trading services

On June 25, 2025, Guotai Junan International Holdings Limited announced that its wholly-owned subsidiary Guotai Junan Securities (Hong Kong) Limited successfully upgraded its existing Type 1 (Securities Trading) regulated activity license and was authorized to provide virtual asset trading services. This breakthrough makes it the first Chinese-funded brokerage in Hong Kong to be authorized to offer comprehensive virtual asset trading services, opening up channels for clients to directly trade mainstream cryptocurrencies and stablecoins such as Bitcoin, Ethereum, and Tether.

After the announcement, the market reacted enthusiastically. The stock price of Guotai Junan International opened significantly higher, with an intraday peak increase of over 100%, reflecting strong confidence from investors in this strategic breakthrough. Meanwhile, the stock price of Huashan Co., which holds a large amount of circulating shares of Guotai Junan International, also rose, with an intraday increase exceeding 8%, indicating the market's widespread optimism towards the virtual asset trading sector.

This license upgrade is an important embodiment of Hong Kong's strategy to build a global core hub for virtual assets. Since the release of the "Hong Kong Virtual Asset Development Policy Declaration" in 2022, Hong Kong has constructed a regulatory framework for digital assets that balances encouraging innovation with risk prevention through a series of initiatives. In early 2025, the Hong Kong Securities and Futures Commission published a regulatory roadmap for the virtual asset market, and the "Stablecoin Bill" passed in May laid the foundation for Hong Kong to gain an advantage in cross-border payments and currency internationalization competition.

Guotai Junan International's recently approved license not only allows it 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 brokerage capable of providing comprehensive virtual asset trading services, covering multiple dimensions such as brokerage business, consulting services, and product issuance.

In fact, Guotai Junan International has already started its layout in the virtual asset field. In 2024, the company launched structured products based on virtual asset spot ETFs and was approved to carry out the business of introducing agents for virtual asset trading platforms. In the first half of 2025, the company further obtained permission to distribute tokenized securities to clients and provide related professional advice, while also initiating digital bond issuance business. This license upgrade has achieved a closed-loop layout from product design, trading services to consulting support.

Industry analysis suggests that more brokerage firms with international business subsidiaries are expected to upgrade to Class 1 licenses in the future, entering the virtual asset trading service sector and further improving the ecosystem of the Hong Kong market. 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 areas such as brokerage, asset management, and investment banking, multiple institutions have launched related businesses, bringing new opportunities to the industry.

Although the virtual asset market has a broad 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 investors to exercise caution when trading company securities.