Guotai Junan International Obtains Virtual Asset Trading License, Opening a New Chapter for Chinese Securities Firms

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 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 provide comprehensive virtual asset trading services, opening up a convenient channel for clients to directly trade mainstream cryptocurrencies 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 intra-day peak increase of over 100%, fully reflecting investors' strong confidence in this strategic breakthrough. At the same time, the stock price of Huashan Co., Ltd., which holds a large number of circulating shares of Guotai Junan International, also rose, with an intra-day increase of over 8%, reflecting the market's general optimism towards the virtual asset trading sector.

This milestone event is an important reflection of Hong Kong's strategy to build a global virtual asset hub. Since the release of the "Hong Kong Virtual Asset Development Policy Declaration" in 2022, Hong Kong has established a regulatory framework for digital assets that balances innovation and risk prevention through a series of measures. In February 2025, the regulatory roadmap released by the Hong Kong Securities and Futures Commission further clarified the policy direction to support the development of the virtual asset market. The passage of the "Stablecoin Bill" in May laid the foundation for Hong Kong to gain an advantage in cross-border payments and currency internationalization competition.

The license approved for Guotai Junan International 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-funded 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 begun its layout in the virtual asset field. In 2024, the company launched structured products based on virtual asset spot ETFs and was authorized to conduct virtual asset trading platform introduction agency business. In the first half of 2025, the company further obtained permission to distribute tokenized securities to clients and provide related professional advice, while also launching the digital bond issuance business. This license upgrade has improved the company's virtual asset business ecosystem, achieving a closed-loop layout from product design, trading services to consulting support.

Industry analysis suggests that in the future, more securities firms with subsidiaries engaged in international business are likely to upgrade to Class 1 licenses and enter the virtual asset trading services sector, further improving the ecosystem of the Hong Kong market. Leading securities firms with a strong customer base entering the market will drive the ongoing development of the cryptocurrency and virtual asset trading ecosystem in Hong Kong.

Globally, traditional financial institutions are participating in the virtual asset industry with unprecedented breadth and depth. In areas such as brokerage, asset management, and investment banking, major financial institutions are actively positioning themselves to inject new momentum into the industry's development.

Although the virtual asset market has a broad outlook, its high volatility 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. At the same time, the company also reminds investors to remain cautious when participating in related investments.