The Hong Kong financial market witnessed a landmark development in mid-2025 as Guotai Junan International became the first Chinese-funded securities firm to receive a full virtual asset license from the Securities and Futures Commission (SFC). This milestone has ignited renewed investor interest in virtual asset-related equities, with Victory Securities surging by an impressive 74.73% on the news. The event underscores Hong Kong’s accelerating push to become a global hub for digital assets, backed by clear regulatory frameworks and growing institutional participation.
👉 Discover how virtual asset licensing is reshaping Hong Kong's financial landscape
Market Overview: Virtual Asset Frenzy Fuels Stock Gains
On June 26, 2025, Hong Kong’s equity market saw significant movement in virtual asset-linked stocks despite a broader market dip. The Hang Seng Index closed down 0.48% at 23,270.98 points, while the Hang Seng Tech Index remained flat at 5,178.34, and the HSCEI fell 0.51% to 8,424.62. Yet, within this environment, stablecoin概念股 (stablecoin-related stocks) rallied strongly.
The catalyst? Guotai Junan International’s official approval to offer comprehensive virtual asset trading, advisory, and product issuance services. This regulatory green light allowed the firm to facilitate direct trading of Bitcoin, Ethereum, and stablecoins, along with participation in over-the-counter derivatives and tokenized securities.
As a result, investor sentiment shifted sharply toward digital asset-exposed firms:
- Victory Securities: +74.73%
- China Everbright Holdings: +15.04%
- Huaxing Capital Holdings: +8.45%
- YeePay: +6.8%
Total market turnover held steady around HK$190 billion, with capital clearly rotating into blockchain and crypto-adjacent sectors. The rally reflected strong confidence in Hong Kong’s ambition to establish itself as Asia’s premier virtual asset gateway.
Impact of the Virtual Asset License on Chinese-Funded Brokers
Guotai Junan International’s upgraded Type 1 license—granted on June 24, 2025—marks a turning point for mainland-affiliated financial institutions operating in Hong Kong. For the first time, a Chinese-funded broker can legally provide end-to-end digital asset services under a fully regulated framework.
This includes:
- Spot trading of major cryptocurrencies
- OTC derivatives and structured products
- Tokenized securities offerings
- Investment advisory for institutional clients
According to analysts at Donghai Securities, “The entry of traditional brokers into the crypto space will channel high-net-worth and institutional capital through compliant routes, significantly enhancing market depth and liquidity.”
Moreover, the move is expected to trigger a wave of similar applications. Industry insiders confirm that brokers like Victory Securities and AID Securities have already completed upgrades to their Type 1 licenses, positioning them for imminent expansion into virtual assets.
Hong Kong’s “A-S-P-I-Re” roadmap—launched by the SFC in February 2025—has laid out a clear path for licensing, product innovation, and infrastructure development. Analysts at CITIC Securities project that the city’s virtual asset market could surpass HK$150 billion in value by year-end.
However, risks remain. While the Hong Kong license offers legitimacy, cross-border regulatory misalignment persists. Mainland China continues to ban cryptocurrency trading, requiring strict operational separation between onshore and offshore businesses. This constraint may limit the pace of large-scale commercialization for Chinese-funded firms in the short term.
Key Factors Shaping the Outlook
- Positive Drivers: Institutional adoption, enhanced compliance credibility, new revenue streams via derivatives and tokenization
- Risks: High market volatility, cybersecurity threats, rising compliance costs, mainland regulatory restrictions
Guotai Junan International’s CEO, Zhou Wenyao, stated: “We aim to leverage our licensing advantage to refine our virtual asset offerings and achieve breakthroughs within a compliant framework.”
Local Brokerage Surge: Victory Securities Takes Center Stage
While Guotai Junan International made history with its license win, it was local players that captured investor enthusiasm most dramatically. Victory Securities emerged as the standout performer, soaring 74.73% and briefly touching HK$9.70—a new all-time high.
The surge wasn’t unfounded. According to its latest disclosures (as of March 31, 2025), Victory Securities recorded over HK$10 billion in virtual asset trading volume over the past 12 months—solidifying its position as Hong Kong’s leading digital asset broker.
Other local firms also benefited:
- China Everbright Holdings: Up 15.04%, recognized for early strategic positioning in digital finance
- Huaxing Capital: Gained 8.45%, driven by positive sentiment around fintech innovation
- YeePay: Rose 6.8%, reflecting optimism about payment-to-crypto integration
Despite being the first to secure the license, Guotai Junan International traded relatively flat on the day—suggesting that investors are currently favoring established local leaders with proven track records in virtual asset execution.
This divergence highlights a crucial insight: regulatory approval opens doors, but market leadership hinges on trust, volume, and technological agility.
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Editor’s Summary: A New Chapter for Hong Kong Finance
The issuance of Hong Kong’s first full virtual asset license to a Chinese-funded broker signals a maturation of the city’s digital finance ecosystem. With clear policies like the “A-S-P-I-Re” plan and upcoming stablecoin regulations, Hong Kong is building a robust foundation for sustainable growth in the blockchain economy.
Yet, market reactions reveal nuanced dynamics:
- Investors are rewarding execution excellence over first-mover status
- Local champions like Victory Securities benefit from brand recognition and volume dominance
- Regulatory compliance is now a baseline requirement—not a differentiator
Going forward, competition among brokers will intensify. Success will depend on three pillars:
- Technological innovation (e.g., low-latency trading engines, multi-chain support)
- Regulatory agility (adapting to evolving SFC guidelines)
- Product diversification (launching ETFs, staking services, tokenized real-world assets)
While opportunities abound, caution remains warranted. Cryptocurrency markets are inherently volatile, and geopolitical or regulatory shifts could impact cross-border capital flows.
Key Events in Hong Kong’s 2025 Virtual Asset Journey
Several pivotal developments have shaped the current momentum:
- May 21, 2025: The Legislative Council passed the Stablecoin Ordinance, mandating that all fiat-referenced stablecoin issuers obtain HKMA approval starting August 1.
- February 19, 2025: The SFC unveiled its “A-S-P-I-Re” roadmap, outlining a five-year vision for virtual asset integration.
- March 6, 2025: The Hang Seng Index surged 775.5 points to 24,369.71—the highest close in three years—amid strong performance in tech and crypto-linked stocks.
- April 7, 2025: The index plunged by a record 3,021 points due to global macro shocks, briefly weighing on virtual asset valuations.
Expert Insights from Global Investment Banks
International institutions have weighed in on the evolving landscape:
“Guotai Junan International’s license approval is a milestone for Chinese brokers entering the virtual asset space,” said David Ng of UBS Group on June 25. “More firms will likely follow, though regulatory and volatility risks must be managed.”
Stephanie Leung from Morgan Stanley noted on June 20: “Victory Securities’ transaction volume leadership positions it as a front-runner. Focus on its tech innovation and market share growth.”
Michael Wong of Goldman Sachs highlighted compliance as key: “In a regulated environment, operational rigor will define long-term winners.”
Laura Chen at HSBC cautioned: “Mainland restrictions may slow down Chinese brokers’ expansion. Local leaders like Victory Securities may benefit most in the near term.”
James Sullivan of JPMorgan Chase emphasized opportunity: “Hong Kong’s policy tailwinds are attracting global capital. Watch for growth in derivatives and tokenized securities.”
Frequently Asked Questions (FAQ)
Q: What does Guotai Junan International’s virtual asset license allow?
A: It permits the firm to offer cryptocurrency trading (including Bitcoin and Ethereum), advisory services, OTC derivatives, and tokenized securities under Hong Kong’s regulated framework.
Q: Why did Victory Securities surge more than Guotai Junan despite not getting the first license?
A: Investors value proven performance. Victory Securities leads in actual trading volume and market share among Hong Kong-based brokers, making it a preferred play on sector growth.
Q: Is Hong Kong now open to crypto trading for institutions?
A: Yes. Since early 2025, licensed brokers can serve institutional clients with crypto products under SFC supervision, provided they meet strict AML and risk management standards.
Q: Can mainland Chinese investors use these services?
A: No. These services are restricted to offshore clients due to China’s domestic ban on cryptocurrency trading. Brokers must enforce strict geographic and KYC controls.
Q: What role does the “A-S-P-I-Re” roadmap play?
A: It’s Hong Kong’s official strategy to build a safe, innovative virtual asset ecosystem through phased licensing, product approvals, infrastructure upgrades, and investor protection measures.
Q: Are stablecoins legal in Hong Kong?
A: Yes—but only if issued by licensed entities. Starting August 1, 2025, all fiat-backed stablecoins must be authorized by the HKMA under new regulations.
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