Core Viewpoint - The approval of the license upgrade allows Guotai Junan International to directly trade cryptocurrencies and stablecoins, marking a significant step in the development of virtual asset trading services in Hong Kong [1][4]. Group 1: Company Developments - On June 24, Guotai Junan International received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to include virtual asset trading services [3]. - Following the license upgrade, Guotai Junan International's stock price surged to HKD 3.7 per share, a 198.39% increase, reaching its highest level since July 2015 [2]. - Guotai Junan International is now the first Chinese broker in Hong Kong to offer comprehensive virtual asset trading services, including trading, advisory, and issuance of related products [4]. Group 2: Market Outlook - Xu Kang, Chief Analyst at Huachuang Securities, believes that Guotai Junan International's early involvement in virtual asset services and the faster-than-expected approval process positions it well for future growth [4]. - The ongoing development of Hong Kong's cryptocurrency and virtual asset trading ecosystem is expected to enhance its strategic position in Web 3.0, supported by a complete regulatory framework and expanding participation [5]. - The Hong Kong Legislative Council passed the Stablecoin Bill on May 21, 2025, indicating a clear strategic commitment to developing virtual assets, leveraging its mature financial infrastructure and international regulatory framework [6].

Market Overview - The market experienced a significant rally with major indices closing up: Shanghai Composite Index rose by 1.03%, Shenzhen Component Index by 1.72%, and ChiNext Index by 3.11% [4] - Nearly 4,000 stocks rose while over 1,200 declined, with total trading volume exceeding 1.6 trillion [4] Financial Sector - The financial sector saw a strong performance, with major stocks like Hailian Jinhui achieving a three-day consecutive rise, and several others including Tianli Technology and Guosheng Financial holding two consecutive gains [7][8] - The financial sector, including large financial institutions and fintech, recorded substantial gains, with increases of 3.35% for large financials, 4.86% for brokerages, and 5.23% for fintech [9] - The surge in the financial sector was partly attributed to the announcement from Guotai Junan International regarding the upgrade of its securities trading license to include virtual asset trading, which positively impacted valuations in the financial sector [14] Military Industry - The military sector rebounded strongly after a previous decline, with stocks like Zhongguang Optical and Beifang Navigation hitting the daily limit [17] - The military sector's rise was supported by the upcoming military parade on September 3, showcasing domestic military equipment, which is expected to boost investor sentiment [20] - Overall, the military sector saw gains of 2.32% and military mixed reform stocks increased by 4.44% [17] Solid-State Battery Sector - The solid-state battery sector continued its upward trend, with stocks like Nord and Xiangtan Electric achieving multiple consecutive gains [25] - The sector's index reached a new high for the year, indicating strong investor interest and performance [26]

Group 1 - The core point of the article is that Guotai Junan International has received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities trading license to provide virtual asset trading services, allowing clients to trade cryptocurrencies and stablecoins directly on its platform [4] - Guotai Junan International has become the first Chinese broker in Hong Kong to offer comprehensive virtual asset trading services, including trading, advisory services, and the issuance and distribution of virtual asset-related products [4] - Following the announcement, Guotai Junan International's stock price surged, with an increase of over 80% at one point, and a current increase of over 61% [4] Group 2 - The SFC has released a regulatory roadmap for the development of the virtual asset market, outlining five key pillars: Access, Safeguards, Products, Infrastructure, and Relationships, along with 12 specific measures [6][7][8] - In the Access pillar, the SFC aims to simplify the entry procedures for the virtual asset market, ensuring that only compliant platforms and financial institutions can operate [6] - The Safeguards pillar focuses on enhancing the regulation of virtual asset trading platforms and custodians to protect investors' assets and promote better risk management measures [6] - The Products pillar includes plans to introduce innovative virtual asset investment products, such as ETFs and tokenized assets, to provide investors with diversified investment options [7] - The Infrastructure pillar emphasizes optimizing the market's infrastructure, including regulatory compliance and platform stability, to ensure market stability and efficiency [8] - The Relationships pillar aims to strengthen cooperation with global regulatory bodies to enhance international coordination in the virtual asset industry [8]