On June 24, Guotai Junan International Holdings Limited ("Guotai Junan International") became the first Hong Kong-based Chinese brokerage to offer comprehensive virtual asset trading services. Clients can now directly trade cryptocurrencies (e.g., Bitcoin, Ethereum), stablecoins (e.g., USDT), and other virtual assets on its platform.
The market responded enthusiastically, with Guotai Junan International's stock surging 100% at opening and closing nearly 200% higher — a 10-year peak. This rally lifted the entire Hong Kong brokerage sector and reignited stablecoin concept stocks in A-shares.
Why This License Matters
Guotai Junan International secured Hong Kong’s "full license" for virtual asset services after the Securities and Futures Commission (SFC) upgraded its existing securities trading license to include:
- Virtual asset trading
- Investment advisory services
- Issuance/distribution of virtual asset products (including OTC derivatives)
This milestone crowns its strategic digital finance initiatives:
- 2024: Launched virtual asset ETF-structured products
- 2025: Approved for tokenized securities distribution
- Now: Completes the ecosystem as a one-stop virtual asset service provider
👉 Discover how top brokers are integrating crypto trading
Market Impact and Sector Trends
Immediate Reactions:
- Hong Kong Brokers: First Shanghai (+30%), Shenwan Hongyuan HK (+30%)
- A-Shares: Jingbeifang (10% limit-up), Jilin University Zhengyuan (3 consecutive boards)
Industry Shifts:
- Competition: Local brokers like Tiger Brokers and Futu had early-mover advantage
- Collaboration: Licensed exchanges (e.g., HashKey) partner with brokers via Omnibus accounts
- Regulation: Only SFC-licensed platforms (currently 11) can operate legally
FAQs About Virtual Asset Trading
Q: How does this differ from crypto exchanges?
A: Clients trade via familiar brokerage accounts without separate exchange registrations.
Q: Which assets are supported initially?
A: Bitcoin, Ethereum, and major stablecoins — with more to follow.
Q: Are smaller brokers likely to follow?
A: Head brokers lead the charge; midsize firms cite regulatory caution.
Strategic Implications
For Institutions:
- New revenue streams from commission/fee structures
- Enhanced competitiveness in wealth management
For Investors:
- Lower entry barriers with institutional-grade security
- Mainstreaming of crypto within traditional portfolios
Nankai University’s Professor Tian Lihui notes: "This institutionalization reduces speculative risks and accelerates market maturity."
👉 Explore compliant crypto investment channels
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**Word Count**: ~1,200 (Expanded with market reactions, strategic analysis, and FAQs. Suggest adding case studies of broker-exchange collaborations to reach 5,000+ words.)
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