The recent approval for virtual asset trading licenses to traditional financial institutions in Hong Kong has generated significant market optimism. Notably, Guotai Junan International has become the first Chinese-backed securities firm in Hong Kong to receive a full virtual asset service license, drawing keen investor interest.
This development signals growing institutional acceptance of cryptocurrency-related services. Multiple brokerage stocks and related companies have seen continued upward momentum, reflecting heightened confidence in this emerging sector.
Strong Performance Among Brokerage Stocks
Several prominent brokerages have posted notable gains. Shenwan Hongyuan Hong Kong (00218.HK), GF Securities (01776.HK), and Oriental Securities (03958.HK) rose by 5.68%, 4.55%, and 4.30%, respectively, underscoring positive market sentiment.
Hua Xing Capital Leads the Surge
Hua Xing Capital Holdings emerged as a top performer, with its share price soaring nearly 40% during the trading session. By the close, it had settled with a gain of over 25%, reaching HK$5.38. This sharp increase highlights investor enthusiasm surrounding the firm’s recent strategic announcements.
Guotai Junan’s Market Impact
The approval of Guotai Junan International’s virtual asset trading license on June 25 had an immediate effect—its stock surged by 198.39% to HK$3.70. This spike illustrates how regulatory milestones can drive substantial market movements.
Following this, TF International Securities also upgraded its securities trading license to include virtual asset services. Other major brokerages, including Huatai International and China Merchants Securities International, are reportedly applying for similar licenses, suggesting a growing cluster of service providers by year-end.
According to Donghai Securities, the entry of traditional brokerages could attract high-net-worth individuals and institutional capital into the crypto space through regulated channels. This is expected to enhance market liquidity and foster innovation in areas such as structured products and real-world asset (RWA) tokenization.
Hua Xing Capital’s $100 Million Web3 Strategy
Apart from sector-wide regulatory advances, Hua Xing Capital Holdings unveiled a major initiative on June 26: a planned investment of $100 million into Web3 and cryptocurrency assets. This move aims to expand into growing niches such as stablecoins and real-world asset tokenization.
The company emphasized Web3 and digital assets' long-term potential, aligning with broader trends in global finance. Having already invested in Circle Internet Group and facilitated listings and financing for leading crypto firms, Hua Xing is positioned to deepen its involvement in stablecoins, RWA, and the broader crypto ecosystem.
The firm also announced plans to pursue additional licenses and upgrades, reinforcing its role as a bridge between traditional finance (Web2) and decentralized technologies (Web3). 👉 Explore more investment strategies
This strategic pivot not only amplifies Hua Xing’s market presence but also strengthens Hong Kong’s position as an evolving hub for digital asset innovation.
Frequently Asked Questions
What triggered the rise in financial stocks in Hong Kong?
Recent regulatory approvals allowing major securities firms to offer virtual asset services have boosted investor confidence. This has led to increased trading activity and upward price movements in brokerage stocks.
How are traditional brokerages entering the crypto market?
Companies like Guotai Junan and TF International are upgrading their licenses to provide virtual asset trading and custody services. Other firms are following suit, creating a more integrated and regulated service ecosystem.
What is real-world asset (RWA) tokenization?
RWA tokenization involves converting physical or financial assets—like real estate or commodities—into digital tokens on a blockchain. This enhances liquidity, accessibility, and transparency in asset trading.
Why is Hua Xing Capital investing in Web3?
Hua Xing aims to leverage emerging opportunities in decentralized technologies, including stablecoins and tokenized assets. The company believes these areas hold significant growth potential and align with the future of global finance.
Will more firms apply for virtual asset licenses?
Yes, several other securities firms are in the process of applying. Regulatory support and market demand are expected to lead to more licensed operators in the near future.
What does this mean for crypto market liquidity?
Involvement from established financial institutions may attract more institutional capital, thereby increasing market depth, stability, and overall liquidity. 👉 View real-time market tools