Hong Kong virtual asset license sparks market follow, Guotai Junan International stock price big pump

Recently, Guotai Junan International announced that it has obtained a virtual asset license in Hong Kong, which has triggered widespread follow in the market for this sector. Currently, there are only 4 listed companies holding virtual asset-related licenses in Hong Kong, including OSL, Guotai Junan International, Futu Holdings, and Up Fintech. Among them, the Hong Kong-listed companies are mainly OSL and Guotai Junan International, while the US stock market includes Futu Holdings and Up Fintech.

Guotai Junan International has been approved to upgrade its "Type 1 Securities Trading License" to a license that allows the provision of virtual asset trading services. The scope of services includes providing direct virtual asset trading services, offering advice during the virtual asset trading service process, as well as issuing and distributing virtual asset-related products, including over-the-counter derivatives.

In fact, since 2024, Guotai Junan International has introduced structured products based on virtual asset spot ETFs in the Hong Kong market and has been authorized to conduct virtual asset trading platform introduction agency business. In February 2025, the Hong Kong Securities and Futures Commission released the "A-S-P-I-Re" regulatory roadmap, clearly stating that it will implement stablecoin management regulations in August. Guotai Junan's actions align perfectly with the policy implementation rhythm and are seen as the actual realization of the Hong Kong government’s strategy to become a "virtual asset international hub."

After the news was announced, Guotai Junan International's stock price skyrocketed, closing with a big pump of 198.4%, driving the Hong Kong Chinese stock broker index to rise by 11.75%. In the A-share market, several brokerage stocks hit the limit up, with Dongfang Caifu rising over 10%, and the brokerage index closing up by 5.52%.

Although Guotai Junan International has become the first approved Chinese-funded brokerage, it is not the only institution laying out virtual asset licenses. Industry insiders revealed that several local Hong Kong brokerages, including Victory Securities and Ade Securities, have successively completed the upgrade application for License No. 1.

It is worth noting that the largest shareholder of Guotai Junan International is Guotai Haitong, which holds 74% of the shares, and the actual controller of Guotai Haitong is the Shanghai State-owned Assets Supervision and Administration Commission. The Shanghai State-owned Assets Supervision and Administration Commission recently stated that it will invest 10 billion RMB in the next five years to support financial innovation and technological development. This background has led the market to have expectations for Guotai Junan International's virtual asset layout as a "national-level strategic pilot."

From the perspective of Guotai Junan International's layout, its compliance path is to enter the virtual asset market as a traditional broker by upgrading licenses and relying on local regulatory channels. Currently, most brokers do not have their own exchanges, but mainly access trading services through comprehensive accounts set up on licensed platforms. Many brokers adopt a similar model and strictly limit the range of clients, for example, requiring clients to have Hong Kong or overseas identities and not accepting mainland residents for trading.

Although the "brokerage + exchange" cooperation model seems to have complementary advantages, there are also potential risks. Once a compliant exchange expands its proprietary trading business in the future, or encounters technical failures or compliance disputes, its highly integrated cooperation structure with the brokerage will make it difficult to separate and independently control the risk exposure.

Currently, the regulatory framework in Hong Kong, while ensuring compliance, has also somewhat suppressed market competitiveness. The number of compliant trading platforms available for connection is limited, resulting in overall insufficient liquidity, and there is a certain gap in trading prices compared to mainstream markets in Europe and the United States. Therefore, some institutions have chosen to apply for VATP licenses themselves and enhance trading efficiency and customer experience by connecting to global liquidity providers, achieving business autonomy and differentiation.

Overall, the approval of Hong Kong virtual asset trading service licenses for Chinese-funded securities firms marks an important step towards the integration of traditional brokerage business with blockchain technology. Hong Kong is striving to build a digital asset financial ecosystem that combines compliance and vitality, while the market is also starting to layout around "compliance virtual assets + financial infrastructure." However, for ordinary investors in the mainland, participating in the cryptocurrency services offered in Hong Kong still faces many restrictions and requires meeting strict regulatory requirements. In the future, as regulatory policies evolve, qualified investors in the mainland may have more opportunities to participate in virtual asset investments.