Hong Kong's virtual asset license sparks market follow, Chinese securities firms welcome new opportunities and challenges

Recently, Guotai Junan International announced the acquisition of a virtual asset license in Hong Kong, triggering widespread market attention in this field. Currently, there are only 4 listed companies holding relevant virtual asset licenses in Hong Kong, including OSL, Guotai Junan International, Futu Holdings, and Xiangshang Rongke. Among them, the Hong Kong-listed companies are mainly OSL and Guotai Junan International, while the US stock market includes Futu Holdings and Xiangshang Rongke. The licensing of Guotai Junan International further enhances the market's attention to related concept stocks.

According to the announcement, Guotai Junan International has been approved to upgrade its "Type 1 Securities Trading License" to a license that allows for the provision of virtual asset trading services. The scope of services includes providing direct virtual asset trading services, offering advice during the trading process, and issuing and distributing products related to virtual assets, such as over-the-counter derivatives, structured notes, and tokenized securities.

In fact, Guotai Junan International began introducing structured products based on virtual asset spot ETFs in the Hong Kong market as early as 2024 and was approved to conduct virtual asset trading platform introduction agent business. In February 2025, the Hong Kong Securities and Futures Commission released the "A-S-P-I-Re" regulatory roadmap, clearly stating that stablecoin management regulations will be implemented in August. Guotai Junan's actions align perfectly with the policy implementation rhythm and are seen as a practical landing of Hong Kong's "virtual asset international hub" strategy.

After the announcement, Guotai Junan International's stock price surged, driving the Hong Kong Chinese brokerage index up. In the A-share market, several brokerage stocks hit the daily limit, with Dongfang Caifu rising by more than 10%, and the Wind brokerage index closing up 5.52%.

Although Guotai Junan International has become the first approved Chinese-backed securities firm, it is not the only institution laying out plans for virtual asset licenses. According to industry insiders, several local Hong Kong securities firms, including Victory Securities and Ade Securities, have successively completed the upgrade application for License No. 1. Futu Holdings has also continued to lay out in the virtual asset field since 2022, with its Hong Kong subsidiary Futu Securities (Hong Kong) having accessed a compliant platform and providing services such as digital asset distribution and custody.

The market attributes the narrative of "national-level strategic pilot" to Guotai Junan International's layout in virtual assets, believing it may enjoy a first-mover advantage in terms of policy, funding, and resource acquisition. In contrast, Futu, as an internet brokerage, has a more limited associative space in the market. Guotai Junan International, as the first Chinese-funded brokerage approved to provide a full-chain virtual asset service, carries symbolic significance as a "path creator," thus generating a scarcity premium.

From the perspective of Guotai Junan International's layout, its compliance path is to enter the virtual asset market as a traditional brokerage through license upgrades and relying on local regulatory channels. Currently, most brokerages do not have their own exchanges, but mainly access trading services by establishing comprehensive accounts on licensed platforms. Many brokerages adopt similar models and strictly limit the scope of clients, for example, requiring clients to have Hong Kong or overseas identities and not accepting transactions from mainland residents.

Under this cooperation model, brokers provide clients with compliant market access channels, while exchanges offer trading and clearing support to brokers. Market bets also extend to related service providers and the virtual asset exchange sector.

However, this business model also carries potential risks. If a compliant exchange expands its proprietary business in the future, or encounters technical failures or compliance disputes, its highly integrated cooperation structure with brokers will make it difficult to slice risk exposure and control it independently. This separation of business may lead to a decrease in trust and a lack of product control ability.

In addition, the current regulatory framework in Hong Kong, while ensuring compliance, has also suppressed the competitive vitality of the market to some extent. The number of compliant trading platforms available is limited, resulting in overall insufficient liquidity and a certain disparity in trading prices compared to the mainstream markets in Europe and the United States. As a result, many local investment institutions in Hong Kong choose to go directly to trading platforms in the United States and other places to purchase cryptocurrencies in order to obtain better prices and deeper liquidity.

Overall, the approval of Chinese-funded brokerages for virtual asset trading service licenses in Hong Kong marks an important step in the integration of traditional brokerage business with blockchain technology. This indicates that Hong Kong is striving to build a digital asset financial ecosystem that balances compliance and vitality. The market is also starting to layout around "compliant virtual assets + financial infrastructure," such as stablecoins, tokenized bonds, and blockchain-reformed brokerages.

However, for ordinary investors within the mainland, participating in the cryptocurrency services offered in Hong Kong still faces many restrictions. Investors need to legally hold a Hong Kong account, and the source of funds and identity background must meet the regulatory standards for the review of overseas compliant funds. In the future, with the evolution of regulations, qualified investors from the mainland may also participate in virtual asset investments through recognized means.