Guotai Junan International, a major Hong Kong-listed Chinese brokerage, saw its shares surge nearly 200% in just two days following regulatory approval to offer cryptocurrency trading services in the city.
SFC License Upgrade Triggers Investor Euphoria
On Wednesday, Guotai Junan announced that the Hong Kong Securities and Futures Commission (SFC) had upgraded its Type 1 license, originally for securities dealing, to include crypto asset trading. This pivotal move now allows Guotai’s clients to buy and sell cryptocurrencies via an SFC-licensed crypto platform, marking a significant milestone for traditional financial institutions entering the digital asset space.
Guotai Junan’s stock price skyrocketed from HK$1.24 to HK$3.70 on Wednesday — a 198% jump. On Thursday, it briefly touched an intraday high of HK$7.02 before closing at HK$3.54, still reflecting a 185% gain over 48 hours.
China’s First Listed Brokerage to Enter Crypto in Hong Kong
Guotai Junan was the first Chinese securities firm to go public in Hong Kong in 2010. The firm is backed by Shanghai’s state-owned enterprise vehicle, Guotai Haitong Group, signaling strong institutional credibility.
This move positions Guotai Junan at the forefront of Chinese brokerages embracing regulated digital asset services under Hong Kong’s evolving crypto framework.
Regulatory Clarity Drives Institutional Adoption
While mainland China maintains a strict ban on crypto trading and mining, Hong Kong has adopted a progressive approach. The SFC has introduced a licensing framework that enables regulated platforms to operate crypto services, attracting both local and global institutions.
On the same day as Guotai’s announcement, the Hong Kong government released its “Policy Statement 2.0,” pledging support for real-world asset tokenization and expanded crypto licensing regimes.
Other brokerages such as China Merchants Securities and Huatai International are also reportedly seeking similar license upgrades, as per the state-owned Securities Times.
Conclusion: A New Era for Traditional Finance in Hong Kong Crypto
Guotai Junan’s successful license upgrade and its explosive stock rally highlight rising investor confidence in regulated crypto markets. As more Chinese institutions turn to Hong Kong as a crypto gateway, the city’s role as a regional digital asset hub is solidifying rapidly.
Stay tuned as Hong Kong’s crypto ecosystem continues to evolve, bridging traditional finance with the future of digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.