Shares of Guotai Junan International surged nearly 200% over two days after the Hong Kong-listed Chinese brokerage secured regulatory approval to offer crypto trading services.
Key Takeaways:
Guotai Junan shares soared 185% in two days after receiving a crypto trading license in Hong Kong. The brokerage becomes one of the first major Chinese firms with regulatory approval to offer crypto services. Hong Kong’s regulatory clarity is drawing traditional financial firms into the digital asset space, unlike mainland China.The rally followed Wednesday’s announcement that the Securities and Futures Commission (SFC) had upgraded Guotai Junan’s Type 1 license, originally for securities dealing, to allow crypto trading on its platform via an SFC-licensed virtual asset provider.
The stock jumped 198% to HK$3.70 on Wednesday and reached an intraday high of HK$7.02 on Thursday before settling at HK$3.54, still up 185% from Tuesday’s close.
Guotai Junan: First Chinese Broker Listed in Hong Kong
Guotai Junan is a state-backed brokerage and was the first Chinese securities firm to list in Hong Kong through an IPO in 2010.
Its parent company, Guotai Haitong Group, is controlled by a Shanghai government entity, according to corporate data from Qichacha.
The license upgrade positions Guotai Junan among a small but growing group of traditional financial firms seeking exposure to Hong Kong’s regulated crypto landscape.
Other brokerages, including China Merchants Securities and Huatai International, are reportedly pursuing similar approvals.
The development comes as Hong Kong doubles down on its digital asset strategy.
Earlier this week, VMS Group, a Hong Kong multifamily office with deep roots in private equity, made its first push into digital assets as clearer regulations and institutional momentum pull traditional investors into the crypto space.
The firm, which manages nearly $4b for some of the city’s wealthiest families, plans to allocate up to $10m to Re7 Capital, a London-based hedge fund focused on decentralized finance strategies.
While Hong Kong welcomes crypto innovation, mainland China continues to uphold its ban on cryptocurrency trading and mining, making the city a critical testing ground for Chinese firms looking to explore the space under a regulated regime.
Hong Kong Announces New Digital Asset Policy
Hong Kong has unveiled its second major policy statement on digital assets, placing stablecoin regulation and real-world asset (RWA) tokenization at the core of its strategy to become a global fintech hub.
The new “LEAP” framework focuses on legal clarity, ecosystem growth, real-world adoption, and talent development, with a stablecoin licensing regime set to launch on August 1.
The government also plans to regulate tokenized government bonds and ETFs, paving the way for secondary market trading of these products on licensed digital asset platforms.
It aims to expand tokenization efforts into sectors like metals and renewable energy, highlighting use cases such as gold and solar panels.
As reported, professionals working in the crypto and hedge fund sectors are playing a key role in supporting Hong Kong’s residential rental market, which continues to struggle due to weak traditional demand sources.
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