A Chinese brokerage listed in Hong Kong makes its first foray into the crypto space! Which company will follow next?

On June 24, $GUOTAI JUNAN I (01788.HK)$ GUOTAI JUNAN I became the first Chinese brokerage in Hong Kong to offer a full range of virtual asset trading services. Clients will be able to trade cryptocurrencies (such as Bitcoin, Ethereum, etc.) and stablecoins (such as Tether, etc.) directly on the GUOTAI JUNAN I platform.

Following this news, the capital markets reacted strongly, with GUOTAI JUNAN I's stock surging nearly 200% by the end of the day, reaching a new high in almost 10 years. Meanwhile, the Hong Kong brokerage sector and cryptocurrency concept stocks also saw significant gains. However, it is worth noting that today (June 26), GUOTAI JUNAN I's stock soared over 80% intraday but then fell back, closing down 4%.

In addition, the long-established Hong Kong brokerage $VICTORY SEC (08540.HK)$ VICTORY SEC was also highly sought after by the market. For example, VICTORY SEC's stock price touched HKD 6 intraday today, reaching its highest level in two and a half years, reflecting the strong interest in the cryptocurrency sector.

What does it mean for GUOTAI JUNAN I to obtain the 'passport' for cryptocurrency trading services?

The general market view is that by entering the emerging and high-growth market of virtual asset trading, GUOTAI JUNAN I will not only open up new revenue sources and business growth points for the company, enhancing its overall competitiveness among Chinese securities firms, but alsoaccelerate the overall layout of Chinese securities firms in this field.

Soochow Securities believes thatfor GUOTAI JUNAN I itself:the transition from a 'traditional brokerage' to a 'digital asset comprehensive service hub' marks a qualitative change in the company's valuation logic.As the first Chinese securities firm to obtain this license, GUOTAI JUNAN I has established a full-chain service capability for virtual assets, including 'trading, custody, advisory, issuance, and derivatives,' achieving a strategic upgrade from a traditional securities service provider to a 'digital asset comprehensive service hub.'

The core value lies in: 1) unlocking high-value-added income sources. Commissions from cryptocurrency and stablecoin trading (significantly higher than traditional stock brokerage fees), cross-border stablecoin clearing profits (efficiency dividends from replacing the SWIFT system), and earnings from structured derivative design and issuance form a robust incremental engine.

2) Seize strategic high ground.\nAgainst the backdrop of Hong Kong's full commitment to building an "International Virtual Asset Center," a full license confers a first-mover advantage in areas such as stablecoin issuance and the tokenization of RWA (Real-World Assets).\n

In the securities industry:\nThe demonstration effect of leading firms is significant, accelerating the evolution of competitive paradigms. The approval for GTJA validates the implementation of Hong Kong's strategy, compelling other leading Chinese securities firms to accelerate their follow-up actions.\n

The core catalysts are twofold:\n

1) Validation of the feasibility of the path. GTJA Hong Kong has demonstrated that leading Chinese securities firms have the capability to manage the compliant operation of virtual assets, paving the way for peers with strong Hong Kong subsidiaries, such as CITIC, China International Capital Corporation, and China Merchants.\n

2) Driving the restructuring of business models.\nThe focus of industry competition will shift from low-value-added, homogenized channel services to building core capabilities in "cross-border digital financial infrastructure."\n

This includes two major pillars: the 'clearing hub' (efficiently handling cross-border payments through stablecoins, capturing a share of SWIFT's market) and the 'securitization engine' (dominating the tokenization and management of real assets such as bonds and funds). This not only optimizes the revenue structure (by increasing the proportion of high-fee businesses) but also opens up new channels for balance sheet expansion for securities firms through the allocation demands of stablecoin reserve assets, achieving synergistic growth between light-capital and heavy-capital businesses.

In the non-bank ecosystem:A new balance of shared benefits and shared risks. The wave of regulatory compliance for virtual assets will initiate and reshape the entire non-bank financial industry chain, with a collaborative ecosystem network around the issuance, circulation, management, and application of digital assets accelerating its formation. 1) Fintech companies: There will be a surge in demand for services such as blockchain infrastructure, smart contract audits, and on-chain compliance monitoring, forming a technical support layer. 2) Payment institutions: Their cross-border payment networks will seamlessly connect to the stablecoin clearing system, significantly improving efficiency and sharing in fee revenues (replacing the high costs of traditional SWIFT). 3) Asset management companies: New types of programmable assets such as tokenized money market funds, bond funds, and REITs will emerge, meeting the global investors' demand for 'on-chain interest-bearing' investments, driving AUM (Asset Under Management) growth.

According to a research report by Huachuang Securities, this practice is colloquially known as the 'upgrade of the No. 1 license' in Hong Kong. Guotai Junan International was one of the early adopters of related business and has made faster-than-expected progress in obtaining approval. The bank expects that more securities firms with international business subsidiaries will complete the upgrade of the No. 1 license, moving towards virtual asset trading services, further improving the market ecosystem, especially those with a strong customer base.

Who will be next?

Guotai Junan International has taken the lead in obtaining the 'green light' for virtual asset trading, and top Chinese securities firms may soon enter the market for trading cryptocurrencies, stablecoins, and other virtual assets.

According to 21st Century Business Herald, among the leading Chinese securities firms, those with international business subsidiaries,such as $CITIC SEC (06030.HK)$Institutions are closely monitoring and may accelerate their business layout in response.Industry insiders indicate that more Chinese institutions are expected to complete their license upgrades over the next 1-2 years.

However, considering the scale of international business and regulatory prudence, smaller and medium-sized securities firms may not keep up with the pace of leading institutions.

Currently, the market is closely watching who will be next. Which companies in the Hong Kong stock market are poised for an uptick? Futubull has compiled a list of mainland securities firms listed in Hong Kong or those with independent listings in Hong Kong for mooers' reference:

The list includes $CICC (03908.HK)$ 、 $GTHT (02611.HK)$ 、 $HTSC (06886.HK)$ 、 $CITIC SEC (06030.HK)$ 、 $CGS (06881.HK)$ 、 $CINDA INTL HLDG (00111.HK)$ 、 $CMSC (06099.HK)$ 、 $EB SECURITIES (06178.HK)$ 、 $CISI FIN (06058.HK)$ 、 $GF SEC (01776.HK)$ 、 $SWHY (06806.HK)$ 、 $SWHYHK (00218.HK)$ 、 $CSC (06066.HK)$ 、 $CC SECURITIES (01375.HK)$ 、 $GLMS SEC (01456.HK)$ 、 $DFZQ (03958.HK)$ 、 $CGS (06881.HK)$ 。

Furthermore, 21st Century Business Herald also reported that, compared to the Chinese securities firms that have obtained the 'entry ticket,' local Hong Kong securities firms have a first-mover advantage in the virtual asset sector. Firms such as Futu, Tiger Brokers, VICTORY SEC, and Interactive Brokers have already entered the market.

With continuous bullish policies in the crypto market, which other companies are expected to benefit?

In February 2025, the Hong Kong Securities and Futures Commission (SFC) released the 'A-S-P-I-Re' roadmap, clearly outlining the pathways for virtual asset entry, product innovation, and infrastructure development, and promoting the development of tokenized securities and compliant DeFi.Under the policy incentives, the size of the Hong Kong virtual asset market is expected to exceed HKD 150 billion within the year, accelerating its progress towards becoming an 'international virtual asset hub'.

Today, the HKSAR Government published the 'Hong Kong Digital Asset Development Policy Declaration 2.0', proposing the 'LEAP' strategic framework to assist in building Hong Kong as a global digital asset center. This will promote the tokenization of real-world assets such as precious metals, nonferrous metals, and renewable energy, showcasing diverse technological applications.

At the same time,the licensing mechanism for stablecoin issuers will be implemented on August 1st.The SFC will serve as the primary regulatory body for digital asset trading services and custody service providers, establishing a unified regulatory framework.

Previously, we compiled a list of stablecoin-related concept stocks in the Hong Kong and US markets for mooers to reference.

1.3M Views