Guotai Junan International, a major Chinese state-backed brokerage, has received regulatory approval to offer cryptocurrency trading services in Hong Kong, triggering a sharp rally in its share price.
The announcement comes as Hong Kong doubles down on its ambition to become Asia’s premier crypto hub, unveiling its new LEAP framework to advance stablecoin regulation, tokenised asset offerings, and crypto market infrastructure.
This dual development not only signals growing regulatory clarity in the region but also cements Hong Kong’s role as a testing ground for digital finance, independent of mainland China’s stance.
Guotai Junan gains SFC approval for crypto trading
On Wednesday, Guotai Junan confirmed that it had received an upgraded Type 1 licence from Hong Kong’s Securities and Futures Commission (SFC).
Previously limited to dealing in traditional securities, the enhanced licence now permits the brokerage to offer compliant digital asset trading through an SFC-regulated crypto platform.
Following the announcement, shares in Guotai Junan soared intraday from HK$1.24 ($0.16) to HK$7.02 ($0.91), a gain of nearly 470%.
As of now, Guotai Junan’s shares are trading at €0.35, down 0.082% for the day.
This reflects some ongoing volatility in investor sentiment following the initial rally.
Source: Google Finance
Although prices have since settled to HK$3.54 ($0.46), the stock remains well above its pre-approval level, reflecting strong investor enthusiasm for the firm’s crypto expansion.
Guotai Junan, listed in Hong Kong since 2010 and controlled by a Shanghai state-owned enterprise, is now among the first traditional Chinese brokerages to receive approval for crypto operations in the city.
Its entry into the digital asset space adds institutional weight to Hong Kong’s broader digital finance ambitions.
Mainland firms eye crypto licences in Hong Kong
With Hong Kong operating under a separate legal regime from mainland China, brokerages from the mainland are increasingly seeking to use the city as a base for digital asset services.
Guotai Junan’s success is expected to encourage similar moves from other institutions.
According to Chinese state media outlet Securities Times, China Merchants Securities and Huatai International are both currently pursuing SFC licence upgrades to offer crypto trading in Hong Kong.
This growing interest comes despite China’s continued blanket ban on retail crypto trading.
The regulatory pathway provided by the SFC and the city’s distinct jurisdictional status enable these firms to explore tokenisation, stablecoin issuance, and Web3 infrastructure development within a more permissive environment.
Hong Kong launches LEAP crypto framework
The approval coincided with the Hong Kong government’s unveiling of its LEAP framework, a strategic blueprint that updates the city’s 2022 digital asset roadmap.
LEAP stands for Legal clarity, Ecosystem expansion, Application focus, and People development.
The initiative was announced Thursday by the Financial Services and the Treasury Bureau (FSTB) and multiple financial regulators. Key elements include a new licensing regime for fiat-backed stablecoin issuers, launching on 1 August.
Under this system, only regulated issuers will be allowed to issue and circulate stablecoins in Hong Kong.
The government also plans to regularly issue tokenised green bonds and promote tokenised ETFs.
A clarification of stamp duty treatment for digital securities is included to facilitate secondary trading.
In addition, Hong Kong will encourage tokenisation of real-world assets such as solar panels and precious metals.
Further, financial authorities will enable crypto derivatives trading for professional investors, following prior approvals for spot crypto ETFs, staking products, and crypto futures.
Strategic goals and mainland contrast
Financial Secretary Paul Chan said the LEAP strategy seeks to demonstrate real-world applications of tokenisation and to link the digital economy with broader financial and social life.
The regulatory push builds on Hong Kong’s efforts to offer clarity and security to crypto market participants while enabling innovation and institutional participation.
While Hong Kong advances crypto adoption through a structured policy framework, the approach remains in stark contrast with that of mainland China.
The latter continues to enforce strict prohibitions on cryptocurrency trading and mining.
However, Hong Kong’s distinct status enables it to act as a sandbox for financial innovation, especially for Chinese state-linked firms like Guotai Junan.
With Guotai Junan’s approval, Hong Kong is one step closer to its goal of becoming a global digital asset hub, offering a regulated platform for tokenised finance, crypto infrastructure, and institutional adoption.
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