The Hong Kong financial market witnessed a seismic shift on June 25, as Chinese brokerages surged in one of the most dramatic equity movements of the year. Guotai Junan International (01788.HK) led the rally with a jaw-dropping 198.39% gain, sparking a sector-wide surge that saw nearly all major mainland-backed securities firms post double-digit growth.
This wasn't just a speculative spike — it was a market revaluation driven by regulatory progress and strategic transformation. The catalyst? Guotai Junan International became the first mainland-affiliated brokerage in Hong Kong to receive formal approval from the Securities and Futures Commission (SFC) to offer virtual asset trading services, including crypto, stablecoins, and advisory on digital assets.
A Regulatory Milestone for Mainland Brokerages
On June 24, Guotai Junan International officially upgraded its Type 1 license (dealing in securities) to include permissions for virtual asset trading and related advisory services. This upgrade allows clients to trade major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as stablecoins such as Tether (USDT), directly through its platform.
👉 Discover how financial platforms are integrating crypto trading into mainstream investing.
The move marks a pivotal moment in Hong Kong’s ambition to become Asia’s premier digital asset hub. By enabling a full-service offering — including issuance, distribution, and brokerage of virtual asset products like OTC derivatives and spot ETFs — Guotai Junan International has set a new benchmark for traditional finance institutions entering the blockchain era.
Industry experts refer to this development as a “Type 1 license upgrade,” a pathway now being eyed by other large brokers with international arms. As early as April 2024, Guotai Junan had already secured eligibility to distribute Bitcoin and Ethereum spot ETFs, positioning itself ahead of peers in regulatory readiness.
“This approval exceeds expectations in timing and scope,” said Xu Kang, Chief Financial Analyst at Huachuang Securities. “We expect more brokerages with overseas subsidiaries to follow suit, especially those with strong client bases and global infrastructure.”
Why This Changes Everything for Brokerages
The implications go far beyond one company’s success. With 13 A+H listed Chinese brokerages and over 30 operating subsidiaries in Hong Kong, the potential for industry-wide adoption is immense. Currently, there are:
- 11 licensed virtual asset trading platforms in Hong Kong
- 40 brokerages authorized to offer crypto trading via integrated accounts
- 40 asset managers approved to manage portfolios with more than 10% exposure to digital assets
These numbers signal growing institutional acceptance. And with Hong Kong’s clear regulatory framework post-2023 virtual asset policy push, the environment is ripe for expansion.
Expanding Into New Revenue Streams
Traditional brokerages are no longer limited to equities and bonds. With virtual assets now part of the investment landscape, they can tap into three core business lines:
1. Brokerage Services
By integrating crypto trading into existing platforms — either independently or through partnerships — brokerages can offer seamless access to digital assets. Examples include:
- Futu Holdings partnering with HashKey
- Interactive Brokers collaborating with OSL Group
- Robinhood launching U.S.-based crypto trading back in 2018
This convergence enables investors to manage both traditional and digital portfolios under one roof.
2. Investment Banking Opportunities
As blockchain companies mature, many are preparing for public listings. Brokerages can play a crucial role in:
- IPO underwriting for crypto-native firms
- M&A advisory for consolidating players
Recent milestones include:
- Coinbase (COIN) listing on Nasdaq in 2021
- Bitfarms (BITF), a Canadian Bitcoin miner, going public
- Galaxy Digital Holdings (GLXY) restructuring and entering Nasdaq in 2025
- Circle, issuer of USDT, completing its NYSE IPO on June 5, 2025
These events underscore the growing intersection between decentralized finance and traditional capital markets.
3. Wealth Management & Product Innovation
Beyond trading, brokerages can develop structured products, ETFs, and wealth solutions involving digital assets. As demand grows among retail and institutional investors alike, offering diversified exposure becomes a key differentiator.
Market Outlook: Who Stands to Benefit?
According to research from Shenyin & Wanguo Securities, the virtual asset wave presents compelling investment opportunities across three themes:
Industry Leaders with Strong Fundamentals
Firms benefiting from improved competitive dynamics and robust balance sheets.
Recommended:- Guotai Junan International
- Haitong Securities
- CITIC Securities
High-Elasticity Players
Brokerages poised for rapid earnings growth due to strategic shifts or lower base effects.
Recommended:- China Merchants Securities
- East Money Information
Global-Focused Institutions
Those with established international networks and cross-border capabilities.
Recommended:- China Galaxy Securities
- CICC (China International Capital Corporation)
👉 See how top financial institutions are adopting blockchain-based services today.
Frequently Asked Questions (FAQ)
Q: What does the SFC license upgrade allow Guotai Junan International to do?
A: It permits the firm to legally offer virtual asset trading services — including buying, selling, and advising on cryptocurrencies like Bitcoin and Ethereum — directly through its platform, making it the first mainland-affiliated brokerage in Hong Kong with full-service capabilities.
Q: Are other Chinese brokerages likely to follow?
A: Yes. Given that over 30 mainland brokerages have Hong Kong subsidiaries and most already hold Type 1 licenses, upgrading to include virtual assets is a logical next step — especially for those targeting international clients.
Q: How are investors reacting to this shift?
A: Extremely positively. The massive stock surge reflects strong market confidence not only in Guotai Junan but in the broader potential for traditional finance to integrate digital assets profitably and securely.
Q: Is this trend limited to Hong Kong?
A: While Hong Kong is leading in Asia due to its clear regulations, similar integrations are happening globally — from the U.S. with Bitcoin ETFs to Europe under MiCA rules. However, Hong Kong’s proximity to mainland capital gives it unique advantages.
Q: Can retail investors access these services easily?
A: Yes. Platforms are designed to integrate crypto trading into existing brokerage accounts, allowing users to switch between stocks and digital assets seamlessly — much like how ETFs were introduced decades ago.
Q: What risks should investors be aware of?
A: While regulation reduces counterparty risk, crypto markets remain volatile. Investors should assess their risk tolerance and diversify appropriately. Regulatory changes, cybersecurity threats, and macroeconomic factors can still impact performance.
The Road Ahead: From Experimentation to Mainstream Adoption
The surge in Chinese brokerage stocks isn’t just about short-term speculation — it reflects a structural shift in how financial institutions view digital assets. What started as niche experimentation has evolved into a core strategic initiative.
As more brokerages upgrade their licenses and launch integrated offerings, we’re likely to see:
- Increased liquidity in Asia’s crypto markets
- Greater institutional participation
- New hybrid financial products combining traditional and digital assets
Hong Kong’s regulatory clarity has created a blueprint others may follow. For investors, this opens up new avenues for growth — not just in crypto prices, but in the companies enabling the next generation of finance.
👉 Learn how you can access next-gen financial tools shaping the future of investing.
With giants like Guotai Junan International leading the charge, the fusion of Wall Street-style finance with blockchain innovation is no longer a vision — it’s reality. And the rally might just be getting started.