Catenaa, Thursday, July 10, 2025-Guotai Junan International, a Hong Kong-listed Chinese brokerage, saw its shares surge nearly 200 percent last week after the Securities and Futures Commission upgraded its license allowing the firm to offer cryptocurrency trading services.
The upgrade from the SFC permits Guotai Junan to enable clients to trade crypto through an SFC-licensed platform, expanding its existing Type 1 license which covered securities dealing.
The company announced the approval last week, triggering a rapid stock rally.
Guotai Junan became the first Chinese securities firm to list in Hong Kong with an IPO in 2010. It is backed by the Chinese state, with Shanghai’s state-owned enterprise vehicle holding controlling interest in its parent company, Guotai Haitong Group, according to enterprise records.
Other major Chinese brokerages, including China Merchants Securities and Huatai International, are reportedly pursuing similar license upgrades to enter the crypto trading market, as reported by the state-owned Securities Times.
Hong Kong has positioned itself as a crypto-friendly financial hub with an established licensing framework for crypto exchanges.
This contrasts with mainland China’s continued ban on crypto trading and mining. The Hong Kong government recently unveiled plans to support real-world asset tokenization and expand its crypto regulatory framework.
The licensing approval marks a significant step for Guotai Junan as it looks to capitalize on growing crypto demand in the region.
