On June 26, 2025, Hong Kong's financial markets witnessed a landmark shift as virtual asset momentum surged across equities, catalyzed by Guotai Junan International becoming the first mainland-backed securities firm to receive a comprehensive virtual asset license from the Securities and Futures Commission (SFC). This milestone not only spotlighted the growing institutional embrace of digital finance but also sent shockwaves through the market—most notably lifting Victory Securities by an astounding 74.73% in a single session.
Despite broader indices like the Hang Seng Index (-0.48%) and Hang Seng China Enterprises Index (-0.51%) closing slightly lower, virtual asset-linked stocks defied the trend, reflecting strong investor confidence in Hong Kong’s ambitions to become a global digital asset hub.
The Strategic Impact of the Virtual Asset License
Guotai Junan International’s upgraded license—approved on June 24—grants it full authority to offer virtual asset trading, advisory services, and product issuance. Clients can now directly trade major cryptocurrencies such as Bitcoin and Ethereum, along with stablecoins, while also gaining access to over-the-counter derivatives and tokenized securities.
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This regulatory green light marks a pivotal moment for Chinese financial institutions. According to analysts at Donghai Securities, “The entry of traditional brokers opens a compliant channel for high-net-worth individuals and institutional investors to allocate capital into crypto assets, significantly upgrading market liquidity and credibility.”
The SFC’s 2025 “A-S-P-I-Re” roadmap laid the foundation for this development, outlining a structured path for virtual asset market entry, product innovation, and infrastructure growth. Industry forecasts suggest Hong Kong’s virtual asset market could surpass 150 billion HKD in value by year-end.
However, challenges remain. While the license enhances competitiveness, mainland China’s strict prohibition on cryptocurrency trading requires Guotai Junan and others to maintain strict operational separation between domestic and offshore activities. This constraint may limit near-term scalability despite strong demand.
Key Impacts and Risks of Virtual Asset Licensing
Positive Drivers:
- Attracts institutional-grade investors seeking regulated exposure
- Strengthens Hong Kong’s position as Asia’s premier digital finance gateway
- Enables product diversification through tokenized securities and crypto derivatives
Potential Risks:
- Regulatory misalignment between Hong Kong and mainland China
- High market volatility may deter risk-averse investors
- Rising compliance and cybersecurity costs
As one industry insider noted, several other local brokers—including Victory Securities and AID Partners—are already progressing toward similar licensing upgrades under the SFC’s Type 1 license framework. The race is on for more Chinese financial firms to follow suit.
Local Broker Surge: Victory Securities Leads the Pack
While Guotai Junan International made regulatory history, it was Victory Securities that captured investor enthusiasm. The stock soared 74.73%, peaking at HK$9.70—a new all-time high—amid strong volume and speculative interest.
This surge wasn’t unfounded. According to company disclosures, Victory Securities recorded over HK$10 billion in virtual asset trading volume in the 12 months ending March 31, 2025, solidifying its leadership among Hong Kong-based digital asset brokers.
Other regional players also gained traction:
- China Everbright Holdings: +15.04%
- Huaxing Capital: +8.45%
- YeePay: +6.8%
Victory Securities CEO Chen Yongkang emphasized that their success stems from a dual focus on technological innovation and regulatory compliance, stating, “Our early-mover advantage in secure, user-friendly platforms has built trust with retail and institutional clients alike.”
Interestingly, Guotai Junan International’s stock remained relatively flat on the day, suggesting that markets currently favor proven volume leaders over first-mover status alone.
Expert Outlook: Global Institutions Weigh In
International investment banks have responded positively to Hong Kong’s evolving digital asset landscape:
- UBS (David Ng, June 25): “Guotai Junan’s license approval is a milestone for Chinese brokers entering the virtual asset space. We expect increased applications, though regulatory and volatility risks remain key concerns.”
- Morgan Stanley (Stephanie Leung, June 20): “Victory Securities’ trading volume dominance positions it as a sector leader. Focus on tech innovation and market share expansion will be critical.”
- Goldman Sachs (Michael Wong, June 15): “Compliance capability will define long-term winners. Both Victory Securities and Guotai Junan show strong potential.”
- HSBC (Laura Chen, June 10): “While the license unlocks growth, mainland restrictions may slow expansion for Chinese brokers. Local leaders like Victory remain more attractive near-term.”
- JPMorgan (James Sullivan, May 30): “Hong Kong’s policy tailwinds are drawing global capital. Watch for opportunities in derivatives and tokenized securities.”
These insights underscore a consensus: Hong Kong is emerging as a regulated bridge between traditional finance and the decentralized economy.
Key Events Shaping 2025’s Crypto Landscape
Several pivotal developments have set the stage for this breakthrough:
- May 21: Hong Kong Legislative Council passed the Stablecoin Ordinance, mandating licensing for fiat-referenced stablecoin issuers starting August 1.
- April 7: Hang Seng Index dropped 3,021 points—the largest single-day fall in history—highlighting crypto market sensitivity to macro shocks.
- March 6: The index rebounded sharply with a 775-point gain, reaching a three-year high amid bullish sentiment.
- February 19: SFC launched the “A-S-P-I-Re” roadmap, outlining strategic pillars for virtual asset integration.
Together, these events reflect a maturing ecosystem where regulation, innovation, and market dynamics converge.
Frequently Asked Questions (FAQ)
Q: What does Guotai Junan International’s virtual asset license allow?
A: It permits full-service offerings including crypto trading (Bitcoin, Ethereum, stablecoins), advisory services, OTC derivatives, and tokenized securities issuance under SFC oversight.
Q: Why did Victory Securities outperform despite not being first to get licensed?
A: Investors rewarded its proven track record—over HK$10 billion in annual trading volume—and strong brand recognition in the virtual asset space.
Q: Can mainland Chinese investors use these services?
A: No. Due to PBOC regulations banning crypto trading, these services are strictly for offshore clients. Brokers must enforce strict geographic and KYC controls.
Q: How does Hong Kong’s regulatory framework compare to other financial hubs?
A: Hong Kong blends innovation with caution—similar to Singapore but more progressive than mainland China or the U.S., offering clearer rules for stablecoins and institutional participation.
Q: What are tokenized securities?
A: These are traditional financial assets (like bonds or equities) represented as blockchain-based tokens, enabling faster settlement, fractional ownership, and programmable features.
Q: Is this rally sustainable?
A: Long-term sustainability depends on continued regulatory clarity, institutional adoption, and risk management amid crypto’s inherent volatility.
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Final Thoughts: A New Chapter for Institutional Crypto
The granting of Hong Kong’s first full virtual asset license to a Chinese broker signals a strategic inflection point. While Guotai Junan International leads in regulatory achievement, Victory Securities exemplifies how execution and volume leadership drive investor sentiment.
As more brokers pursue licensing under the A-S-P-I-Re framework, competition will intensify. Success will hinge not just on regulatory approval but on technological resilience, client trust, and product innovation—especially in emerging areas like stablecoin integration, tokenized assets, and institutional-grade custody solutions.
For investors, the message is clear: Hong Kong is open for digital finance business—but due diligence remains essential in navigating this dynamic frontier.
Core Keywords: virtual asset, crypto assets, Guotai Junan International, Victory Securities, Hang Seng Index, stablecoin, tokenized securities, Hong Kong SFC.