The Hong Kong virtual asset market continues to gain momentum, with increasing attention on licensed financial institutions expanding into digital finance. Recent reports confirm that TF International Securities has upgraded its securities trading license to include virtual asset trading services—a move signaling deeper integration between traditional finance and the digital economy.
Under the regulatory framework overseen by the Securities and Futures Commission (SFC) of Hong Kong, firms must meet stringent technical and compliance standards to offer virtual asset services. The SFC applies a “same business, same risk, same regulation” principle, ensuring that digital asset activities are held to the same rigorous oversight as traditional financial products. Meanwhile, areas involving payment functions—such as stablecoins and the digital Hong Kong dollar—are regulated by the Hong Kong Monetary Authority (HKMA).
This license expansion allows TF International’s clients to trade cryptocurrencies and stablecoins directly on its platform, marking a significant step in bridging conventional investment infrastructure with next-generation digital assets.
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Stablecoin Momentum Builds Amid Regulatory Clarity
Stablecoin adoption is accelerating globally, driven by clearer regulatory frameworks and growing institutional interest. Analysts at Huolong Securities highlight that both domestic and international efforts to formalize stablecoin regulations are creating fertile ground for innovation. With use cases in cross-border payments, digital currency infrastructure, and blockchain-enabled financial systems becoming more defined, investors are advised to focus on companies with strategic exposure to these trends.
Two firms stand out in this evolving landscape:
- Lakala is among the first payment institutions to partner with the People’s Bank of China Digital Currency Research Institute. It leads in digital RMB acceptance, supporting everything from small vendors to large enterprise merchants. In Q1 2025 alone, Lakala reported an 85% year-on-year increase in cross-border payment volume, serving over 100 countries with a 76% growth in merchant base.
- Sandbox Tree (Sifang Jingchuang) brings deep expertise in blockchain and distributed ledger technology. Its FINNOSafe compliant Web3 platform supports stablecoin issuers and market participants across issuance, tokenization, trading, payments, and custody—offering a full-stack solution for regulated virtual asset operations.
Water Conservancy Investment Maintains Strong Growth Trajectory
In parallel, China's water infrastructure sector is seeing sustained high investment levels. A recent policy directive from the General Office of the Central Committee and the State Council emphasizes comprehensive river basin protection, calling for improvements in flood control systems through reservoir construction,堤防 upgrades, and integrated flood storage zones.
Key initiatives include:
- Upgrading existing reservoirs and enhancing flood management capacity
- Accelerating construction of main river embankments and small river governance
- Expanding rural water system restoration projects
- Strengthening floodplain management and controlling population inflow into high-risk areas
- Advancing urban-rural flood drainage networks and early warning systems
Hua Yuan Securities notes that water conservancy investments reached a record 1.35 trillion yuan in 2024, up 12.8% annually. By April 2025, 294.36 billion yuan had already been invested, focusing on water transfer projects, flood control, and agricultural irrigation—key areas where infrastructure gaps remain.
Leading players include:
- Shenzhen Water Planning & Design Institute (SWPDI): A top-tier design firm in Guangdong, SWPDI has developed intelligent flood control platforms using AI-powered data modeling, IoT sensing, and real-time analytics. Their "Four Pre" system—prediction, forecast, warning, and pre-response—delivers automated reporting and smart decision support.
- Hanjiang Heshan: Specializing in prestressed concrete cylinder pipes (PCCP), the company supplies critical components for inter-basin water transfer, urban supply systems, and farmland irrigation projects.
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FAQ: Virtual Assets & Market Developments
Q: What does it mean for a securities firm to add virtual asset trading to its license?
A: It means the firm can legally offer cryptocurrency and stablecoin trading services under SFC supervision, subject to strict anti-money laundering (AML) and investor protection rules.
Q: Why are stablecoins gaining institutional traction?
A: Stablecoins combine blockchain efficiency with price stability, making them ideal for cross-border settlements, remittances, and programmable finance—especially as global regulators clarify compliance pathways.
Q: How does AI integrate with physical infrastructure like flood control?
A: AI enhances predictive modeling for rainfall patterns, reservoir levels, and flood risks. Systems like SWPDI’s use machine learning to simulate scenarios and trigger early warnings automatically.
Q: What role does blockchain play in commodity markets?
A: Blockchain improves traceability in mining and refining processes, supports tokenized asset trading, and enables transparent supply chain finance—particularly relevant for gold and silver markets.
Q: Is Hong Kong becoming a crypto hub?
A: Yes. With clear licensing rules, tax incentives, and institutional adoption, Hong Kong is positioning itself as Asia’s leading regulated crypto gateway.
Honor Files IPO: AI Ecosystem Takes Center Stage
On June 26, Honor Terminal Co., Ltd. officially filed for IPO counseling with the Shenzhen Securities Regulatory Bureau, with CITIC Securities as lead advisor. If successful, Honor could become the first AI-centric consumer electronics firm listed on China’s A-share market.
The company’s “Alpha Strategy” focuses on embedding AI deeply into hardware ecosystems. Its upcoming flagship device—the Honor Magic V5 AI foldable phone—is set for launch on July 2. Beyond smartphones, Honor is exploring robotics and open AI ecosystems, aiming to create seamless human-machine interactions.
Backed by strategic investors including China Mobile and CICC Capital since its 2024 restructuring, the IPO will bolster R&D funding and channel expansion.
Analysts at Guotai Haiguo Securities note that Honor’s AIAgent technology is six months ahead of industry peers, already integrated into new devices—potentially triggering a wave of device upgrades and boosting demand across upstream suppliers.
Key partners:
- AiSiDe (ASD): The sole full-channel retail partner for Honor, managing flagship stores on Tmall, JD.com, and Honor’s direct sales channels.
- Tianyin Holding: A major distributor in China’s smart terminal market; its subsidiary holds a 19.36% stake in Shenzhen Xingmeng Information Technology Partnership, a shareholder of Honor Terminal.
Xiaomi YU7 Demand Surges – Supply Chain Benefits
Xiaomi’s YU7 electric vehicle surpassed expectations with over 289,000 firm orders within one hour of opening reservations.
According to Xiangcai Securities, the YU7 stands out in intelligent driving perception and battery range—appealing strongly to tech-savvy buyers. This momentum is expected to uplift the entire supply chain.
Suppliers benefiting include:
- Huayang Group: Provided the panoramic "Skyline Display" and PHUD (Projection Head-Up Display) for YU7.
- Futron Technology: Supplies onboard power systems for Xiaomi vehicles.
- Zhenbang Intelligent: Delivers dedicated control units for Xiaomi SU7 and YU7 car fridges via third-party partnerships.
Viatech Advances Toward IPO with Strategic XR Focus
The Shanghai Stock Exchange has accepted the科创板 IPO application of Viatech Corporation, which plans to raise 2.015 billion yuan. Backed by investors like GoerTek, Yuan Capital, and Hefei Guoxin Capital, Viatech is valued at over 10 billion yuan and appears on the 2024 Global Unicorn List.
As AI drives demand for immersive computing, Viatech’s silicon-based OLED microdisplays are emerging as core components in AR/VR headsets. These displays offer high resolution, low latency, wide color gamut, and energy efficiency—making them ideal for next-gen human-machine interfaces.
The company sees XR devices as central to AI edge computing evolution, enabling multi-modal interaction beyond screens.
Publicly listed stakeholders:
- Jingce Electronics: Holds a 6.02% stake in Viatech.
- Kechuan Technology: Serves Hefei Viatech Display Technology Co., Ltd., a Viatech subsidiary.
Precious Metals Outlook: Silver Poised for Catch-Up
Analysts remain bullish on precious metals. While gold maintains long-term appeal due to macroeconomic uncertainty and central bank buying, silver is entering a catch-up phase.
Sinopec Securities points out that silver remains undervalued relative to gold—the gold-silver ratio suggests room for correction. Silver also benefits from industrial demand in solar panels, electronics, and EVs.
Supply-demand fundamentals show a persistent deficit outlook for 2025, reinforcing upward price pressure during accommodative monetary cycles.
Key producers:
- Xingye Yinyin Tin (Xingye Silver & Tin): Engaged in exploration and smelting of precious and non-ferrous metals with advanced extraction technologies.
- Shengda Resources: Controls seven mining subsidiaries with proven reserves of approximately 12,000 tons of silver and 34 tons of gold, processing nearly 2 million tons annually.
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