Guotai Junan International, a Hong Kong-listed Chinese brokerage firm, recently obtained approval from the Hong Kong Securities and Futures Commission (SFC) to provide virtual asset trading services. This announcement triggered a surge of market interest, with the company’s stock price soaring by 185% over just two trading sessions.
On June 25, 2025, the company disclosed that it had received regulatory approval to upgrade its existing Type 1 license (for securities trading) to include virtual asset trading services. With this upgraded license, clients of Guotai Junan International will be able to trade cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like USDT, directly on the firm’s platform.
This makes Guotai Junan International the first Chinese-backed brokerage in Hong Kong authorized to offer a full suite of virtual asset services. The expanded license covers trading, advisory services related to virtual assets, and the issuance and distribution of virtual asset-related products—including over-the-counter derivatives.
Market Response and Stock Performance
According to market data, the positive news fueled a dramatic rise in the company’s share price. On the first day following the announcement, the stock surged by 198%, closing at HK$3.70. The following morning, prices climbed further, reaching an intraday high of HK$7.02 before profit-taking set in. The stock eventually closed the session down 4.32% at HK$3.54. Despite the pullback, this still represented a two-day cumulative gain of 185% from Tuesday’s closing price of HK$1.24.
Background and Corporate Structure
Established in Hong Kong in 1993, Guotai Junan International became the first Chinese-backed securities firm to list on the Main Board of the Hong Kong Stock Exchange via an IPO in 2010. Its parent company is a state-owned enterprise based in Shanghai, with ultimate control resting under Shanghai International Group.
The firm’s expansion into virtual asset services aligns with broader trends in Hong Kong’s financial regulatory landscape, which has been gradually opening up to digital assets under structured frameworks.
Industry Context and Competitor Moves
Other major Chinese securities firms with operations in Hong Kong, including招商證券國際 (CMSC International) and華泰國際 (Huatai International), are also reported to be seeking similar license upgrades to offer virtual asset trading. This suggests a growing interest among traditional financial institutions in participating in the digital asset ecosystem under regulated conditions.
Hong Kong has been strengthening its regulatory framework around virtual assets to enhance investor protection and promote market integrity. The city aims to become a leading hub for digital finance while ensuring compliance with international standards.
Frequently Asked Questions
What does the SFC’s approval allow Guotai Junan International to do?
The license upgrade permits the firm to offer virtual asset trading, provide advisory services related to digital assets, and issue or distribute virtual asset-linked financial products, including derivatives.
Which assets can clients trade under the new license?
Clients will have access to major cryptocurrencies like Bitcoin and Ethereum, as well as popular stablecoins such as USDT.
Why did the stock price increase so significantly?
Market sentiment was strongly positive due to the firm’s first-mover advantage as a Chinese-backed brokerage entering the virtual asset space in Hong Kong, attracting substantial investor interest.
Are other brokerages seeking similar approvals?
Yes, several other Chinese-backed securities firms operating in Hong Kong are also applying to upgrade their licenses to include virtual asset services.
Is Hong Kong becoming more open to cryptocurrency trading?
Yes, Hong Kong has been progressively establishing a regulatory environment that supports virtual asset trading under clear legal frameworks, aiming to become a competitive digital finance center.
What should investors consider before trading virtual assets?
Prospective investors should be aware of the high volatility and regulatory risks associated with digital assets. It is important to explore more strategies and understand market dynamics thoroughly before participating.
This article is intended for informational purposes only. It should not be interpreted as investment advice or a recommendation. Investors should conduct their own research and consult with financial advisors before making investment decisions.