The Hong Kong Securities and Futures Commission (SFC) recently granted approval to Guotai Junan International Holdings Limited, a subsidiary of Guotai Haitong, to upgrade its existing Type 1 securities trading license. This enhanced license now permits the provision of virtual asset trading services and related advisory services, marking a significant milestone as the first comprehensive virtual asset trading service offered by a Chinese-backed securities firm in Hong Kong.
Market Reaction to Virtual Asset Trading Approval
The announcement triggered an explosive market response:
- Guotai Junan International's stock surged nearly 200% on June 25
- Hong Kong's Chinese-backed securities index jumped 11.75% in a single day
- Multiple A-share brokerages like Tianfeng Securities hit daily price limits
- East Money Information gained over 10%
- Wind's brokerage sector index rose 5.52% throughout the trading day
According to Hong Kong SFC disclosures, 40 institutions have now received approval to provide virtual asset trading services through comprehensive account arrangements. These include:
- Tianfeng International (subsidiary of Tianfeng Securities)
- Haifu Securities (affiliated with East Money Information)
- Futu Securities (Hong Kong)
- Interactive Brokers
- China Zhongqi Securities
- ZA Bank (Hong Kong's first licensed retail crypto-trading bank)
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License Upgrade Details and Market Impact
Guotai Junan International's upgraded license enables:
- Direct trading of cryptocurrencies (BTC, ETH, etc.)
- Stablecoin transactions (including USDT)
- Advisory services for virtual asset trading
- Issuance and distribution of virtual asset-related products
The company has been pioneering virtual asset services:
- 2024: Launched structured products based on virtual asset spot ETFs
- 2025: Obtained approval for tokenized securities distribution
- June 2025: Completed virtual asset trading service ecosystem
Analysts attribute the market surge to:
- Growing stablecoin investment opportunities
- Enhanced service ecosystems
- Early-mover advantages for Chinese-backed brokerages
- Strong positioning of internet-based securities firms
Regulatory Landscape and Approved Platforms
Hong Kong currently hosts:
- 11 licensed virtual asset trading platforms
- 6 spot ETFs
- 3 futures ETFs
Notable licensed platforms include:
- OSL Digital Securities
- Hash Blockchain Limited
- Hong Kong Virtual Asset Exchange
- DFX Labs Company
- Bullish HK Markets
Three licensed platforms operate under internet brokerage umbrellas:
- Futu Securities' Leopard Trading (HK)
- Tiger Brokers' YAX (Hong Kong)
- Sina-backed Thousand Whales Technology
Strategic Developments Across the Sector
The Hong Kong SFC's 2025 "A-S-P-I-Re" roadmap outlines virtual asset market development across five dimensions:
- Access: Defining operational requirements
- Safeguards: Investor protection measures
- Products: Diversified offerings (ETFs, tokenized assets)
- Infrastructure: Trading stability and settlement improvements
- Relations: Global regulatory cooperation
Major brokerages like Huatai Securities International and China Merchants Securities International confirm strategic virtual asset initiatives are underway, awaiting regulatory approvals to serve qualified investors.
Frequently Asked Questions
Q: Which institutions can legally provide virtual asset services in Hong Kong?
A: Only firms with upgraded Type 1 licenses from Hong Kong SFC (currently 40 approved institutions).
Q: What virtual assets can investors trade through these platforms?
A: Cryptocurrencies (BTC, ETH), stablecoins (USDT), and approved tokenized securities.
Q: How does ZA Bank's crypto service differ from others?
A: As Asia's first licensed retail crypto-trading bank, it offers zero-commission promotions but currently restricts external transfers.
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Q: What risks should investors consider?
A: Market volatility, regulatory changes, and platform security - only trade through SFC-licensed providers.
Q: Are more license approvals expected?
A: Yes, numerous Chinese-backed brokerages are actively pursuing virtual asset service approvals.
Q: What products are available beyond direct trading?
A: Structured products, tokenized securities, ETFs, and derivatives based on virtual assets.