Core Viewpoint - The approval of Guotai Junan International by the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services has sparked significant market activity, marking it as the first Chinese-funded brokerage in Hong Kong to offer comprehensive virtual asset-related trading services [1][3]. Market Reaction - Following the announcement, Guotai Junan International's stock surged nearly 200% on June 25, contributing to an 11.75% increase in the Hong Kong Chinese brokerage index and a 5.52% rise in the Wind brokerage index [2][4]. - The approval has led to a broader rally in the market, with several other brokerage stocks, including Tianfeng Securities and Dongfang Caifu, also experiencing significant gains [2][5]. Virtual Asset Trading Services - Guotai Junan International can now directly facilitate trading in cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like Tether, and provide advisory services related to virtual asset trading [3][5]. - The company has been proactive in the virtual asset space, having launched a virtual asset spot ETF-based structured product in 2024 and obtaining licenses for tokenized securities distribution and digital bond issuance in 2025 [3]. Regulatory Landscape - As of June 24, 2025, a total of 40 institutions have upgraded their licenses to provide virtual asset trading services, including 38 brokerages, one bank, and one internet company [6][8]. - Notably, ZA Bank has become the first licensed bank in Asia to offer cryptocurrency trading services to retail investors, with promotional offers to attract new clients [6]. Future Developments - The Hong Kong Securities and Futures Commission has outlined a regulatory roadmap for the virtual asset market, focusing on ensuring investor asset safety, introducing diverse products like ETFs and tokenized assets, and enhancing infrastructure for trading stability [9]. - Several other Chinese-funded brokerages, including Huatai International and China Merchants Securities International, are actively preparing to enter the virtual asset trading space, indicating a strategic shift in the industry [10].

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]