The approval of a comprehensive virtual asset license for a major Chinese-backed securities firm has significantly influenced Hong Kong's financial markets. This move signals a new phase in the region's strategy to become a leading virtual asset hub, attracting institutional interest and driving substantial market activity.
Market Overview
On June 26, 2025, Hong Kong's stock market experienced notable activity within the virtual asset sector. Stablecoin concept stocks performed particularly well, fueled by the announcement that Guotai Junan International had received the first full virtual asset license granted to a Chinese-backed brokerage. This development served as a major catalyst across the sector.
In response to this news, Victory Securities surged by 74.73%. Other companies also saw significant gains: China Everbright Limited rose by 15.04%, while Huaxing Capital Holdings and YeePay increased by 8.45% and 6.8% respectively. Trading volume remained robust at approximately HKD 190 billion, with capital clearly flowing toward virtual asset-related segments.
Despite the broader market indices showing modest declines—the Hang Seng Index dropped 0.48%, the Hang Seng Tech Index remained flat, and the HSCEI fell 0.51%—the virtual asset sector displayed strong momentum. This activity underscores investor confidence in Hong Kong's growing role within the global digital asset ecosystem.
Impact on Chinese-Backed Brokerages
On June 24, Guotai Junan International received approval from Hong Kong's Securities and Futures Commission (SFC) to upgrade its securities trading license. This landmark decision allows the firm to offer virtual asset trading, advisory services, and product issuance. Clients can now directly trade Bitcoin, Ethereum, and stablecoins, and participate in over-the-counter derivatives and tokenized securities businesses.
An analyst from Donghai Securities noted, "The entry of traditional brokerages will attract high-net-worth individuals and institutional capital to allocate crypto assets through compliant channels, enhancing overall market liquidity." The issuance of this virtual asset license not only strengthens Guotai Junan's competitive position but is also expected to accelerate application processes from other Chinese-backed brokerages.
Industry sources indicate that several local Hong Kong brokerages, including Victory Securities and Aiding Securities, have already completed their Type 1 license upgrades. More Chinese-backed firms are likely to follow suit in the near future.
The SFC's "A-S-P-I-Re" roadmap, published in February 2025, outlines a clear path for virtual asset access, product innovation, and infrastructure development. The virtual asset market in Hong Kong is projected to exceed HKD 150 billion by the end of the year.
Citic Securities highlighted that "Hong Kong’s licensing framework offers a compliant entry point for institutions, but high volatility in crypto markets and cross-border regulatory differences require caution." The CEO of Guotai Junan International, Zhou Wenyao, stated, "Our company will leverage this license to optimize virtual asset services and achieve breakthroughs within a compliant framework."
While this license opens a new business segment for Chinese brokerages, mainland China’s strict regulations on cryptocurrency trading require firms to carefully separate domestic and overseas operations. This may limit the pace of large-scale expansion in the short term.
| Factor | Positive Impact | Potential Risk |
|---|---|---|
| License Issuance | Attracts high-net-worth clients; enhances competitiveness | Cross-border regulatory differences; mainland policy restrictions |
| Market Liquidity | Institutional capital increases trading volume | High volatility may lead to capital outflow |
| Product Innovation | New growth from derivatives and tokenized securities | Rising technical security and compliance costs |
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Performance of Local Hong Kong Brokerages
The positive news surrounding Guotai Junan International’s license approval had a strong effect on local Hong Kong brokerage stocks. Victory Securities stood out, reaching an all-time high of HKD 9.7 during intraday trading and closing with a remarkable 74.73% gain.
According to the company’s official website, Victory Securities reported virtual asset trading volume exceeding HKD 10 billion in the 12 months ending March 31, 2025, securing its position as the leading virtual asset brokerage in Hong Kong.
Other local firms also benefited from the virtual asset market surge. China Everbright Limited rose by 15.04%, Huaxing Capital Holdings increased by 8.45%, and YeePay gained 6.8%. The CEO of Victory Securities, Chen Yongkang, commented, "Our leading position in virtual asset trading is due to technological innovation and compliance capabilities. We plan to further expand our service offerings."
Interestingly, while Guotai Junan International was the first Chinese-backed firm to receive approval, its stock performance remained stable on the announcement day. This suggests that market participants currently favor local brokerages with established market leadership.
| Brokerage | Price Change | Key Highlights |
|---|---|---|
| Victory Securities | +74.73% | Trading volume over HKD 10 billion; record high |
| China Everbright Limited | +15.04% | Virtual asset service offerings gain market recognition |
| Huaxing Capital Holdings | +8.45% | Benefits from optimistic virtual asset outlook |
| YeePay | +6.8% | Potential in integrating payment services with virtual assets |
| Guotai Junan International | Stable | First-mover advantage with long-term potential |
Analysis and Conclusion
The approval of a full virtual asset license for Guotai Junan International represents a significant milestone in the development of Hong Kong’s virtual asset market. Policy incentives are accelerating market expansion, with local brokerages like Victory Securities gaining immediate investor attention due to their trading volumes and market recognition.
This preference for established local leaders highlights the importance of first-mover advantage and operational scale. The issuance of virtual asset licenses offers Chinese-backed brokerages a compliant pathway into the market. However, challenges remain, including regulatory restrictions in mainland China and the inherent volatility of digital assets.
As more brokerages enter the virtual asset arena, competition is expected to intensify. Innovation and compliance capabilities will become central to long-term success. Investors should monitor policy developments and company fundamentals closely to identify sustainable opportunities.
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Key Events of 2025
May 21, 2025: Hong Kong’s Legislative Council passed the Stablecoin Ordinance, requiring all fiat-referenced stablecoin issuers to obtain a license from the Hong Kong Monetary Authority starting August 1. This strengthens the regulatory framework for virtual assets.
April 7, 2025: The Hang Seng Index experienced a historic single-day drop of 3,021.51 points, closing at 19,828.3. The virtual asset sector faced temporary pressure due to global market volatility.
March 6, 2025: The Hang Seng Index surged by 775.5 points, reaching 24,369.71—a three-year high. Virtual asset-related stocks were particularly active amid bullish sentiment.
February 19, 2025: The SFC released the "A-S-P-I-Re" roadmap, detailing plans for virtual asset access and product innovation. The virtual asset market is projected to surpass HKD 150 billion within the year.
International Investment Banks and Expert Commentary
June 25, 2025, David Ng (UBS): “The license approval for Guotai Junan International marks a milestone for Chinese brokerages entering the virtual asset market. We expect more institutions to apply, though regulatory and volatility risks remain.”
June 20, 2025, Stephanie Leung (Morgan Stanley): “Victory Securities’ volume advantage makes it a sector leader. Investors should monitor its technology upgrades and market share expansion.”
June 15, 2025, Michael Wong (Goldman Sachs): “Hong Kong’s virtual asset market is growing rapidly with policy support. Compliance capabilities will be key for long-term competitiveness.”
June 10, 2025, Laura Chen (HSBC): “Virtual asset licenses open new growth avenues, though mainland regulations may slow expansion for Chinese firms. Local leaders like Victory Securities are well-positioned.”
May 30, 2025, James Sullivan (JP Morgan): “Policy incentives in Hong Kong are attracting global capital. License approvals will increase competition, especially in derivatives and tokenized securities.”
Frequently Asked Questions
What does a virtual asset license in Hong Kong allow?
A virtual asset license permits firms to offer trading, advisory, and product issuance services for cryptocurrencies like Bitcoin and Ethereum. It also includes permission to deal in stablecoins, OTC derivatives, and tokenized securities under regulatory oversight.
Why did Victory Securities’ stock price increase so significantly?
Victory Securities already had a leading position in virtual asset trading volume in Hong Kong. The news of further market liberalization and the company’s established infrastructure led to optimistic investor sentiment and a sharp price rise.
How does mainland China’s regulation affect Hong Kong’s virtual asset market?
Mainland China prohibits cryptocurrency trading, which means Chinese-backed firms operating in Hong Kong must strictly separate their mainland and Hong Kong operations. This may slow the expansion pace of these firms in the virtual asset sector.
What is the SFC’s ‘A-S-P-I-Re’ roadmap?
The "A-S-P-I-Re" roadmap is a regulatory framework published by Hong Kong’s Securities and Futures Commission. It outlines the strategy for virtual asset access, product innovation, and infrastructure development aimed at growing the market under clear compliance guidelines.
Which types of assets can be traded under the new license?
Licensed brokerages can offer trading in major cryptocurrencies, stablecoins, and related derivative products. They are also permitted to engage in the issuance and trading of tokenized securities.
Are there risks for investors in virtual asset stocks?
Yes. While growth potential is significant, virtual asset stocks are subject to high volatility, regulatory changes, and technological risks. Investors should conduct thorough research and consider their risk tolerance before investing.