Hong Kong's GTJA International Soars 90% on Breakthrough in Virtual Asset Trading Approval

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On June 24, GTJA International, a subsidiary of Guotai Junan and Haitong Group, announced a major regulatory milestone: it has officially received approval from the Securities and Futures Commission (SFC) of Hong Kong to upgrade its existing securities trading license. This enhancement allows the firm to provide virtual asset trading services and offer investment advice related to digital assets. As a result, GTJA International has become the first mainland Chinese-backed securities firm in Hong Kong authorized to offer comprehensive virtual asset trading solutions.

The market responded swiftly. Shares of GTJA International surged nearly 90% at the opening and closed up close to 200% — marking the highest level since July 2015.

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A Strategic First Mover in Digital Finance

GTJA International has been strategically positioning itself at the forefront of Hong Kong’s evolving digital asset ecosystem. As early as 2024, the company launched structured products based on virtual asset spot ETFs in the Hong Kong market — an innovative move that catered to institutional and retail investors seeking exposure to cryptocurrencies through regulated instruments.

Building on this momentum, in early 2025, GTJA International secured SFC confirmation allowing it to distribute tokenized securities and provide advisory services around them. The firm also initiated its digital bond issuance business, signaling a broader ambition to digitize traditional financial products.

The June 24 approval completes a critical phase of its digital transformation by enabling direct virtual asset trading services. This creates a full-service value chain — from advisory and structuring to execution and custody — positioning GTJA as a pioneer among Chinese financial institutions embracing blockchain-based finance.

Understanding the Regulatory Framework

Hong Kong maintains a robust licensing regime for virtual asset activities. Key licenses include:

According to Zhu Zhenyu, Sales Director at HashKey Exchange — one of Hong Kong’s 11 licensed virtual asset platforms — each license corresponds to specific operational scopes and compliance obligations.

For most traditional brokers, holding Types 1 and 4 licenses is standard. GTJA International’s recent upgrade effectively expands the scope of its Type 1 license to cover crypto trading, making it possible to serve retail investors under Hong Kong’s regulated framework.

“Without a Type 7 license, brokers can’t independently match trades,” explains Zhu. “Instead, they must route client orders through licensed exchanges like ours using broker-dealer interfaces. The broker handles customer onboarding, KYC, front-end UX, and instruction routing — while the exchange executes the trade.”

This model ensures regulatory compliance while enabling traditional financial firms to enter the space without building complex infrastructure from scratch.

Infrastructure and Technology: Bridging Two Worlds

Integrating virtual assets into traditional brokerage operations requires more than just regulatory approval — it demands robust technical infrastructure.

As Xie Zhijian, Managing Director at Futu Securities, points out: “Investor needs are diversifying. Some traditional investors want exposure to crypto; others holding digital assets want access to conventional financial products. But regulatory requirements mandate strict separation between fiat and crypto holdings.”

This means brokers must implement segregated systems — one for traditional securities, another for digital assets — with secure gateways for fund movement and portfolio management.

User experience is equally important. Brokers need intuitive interfaces that allow seamless switching between stock and crypto trading, unified reporting, and real-time risk monitoring across asset classes.

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The Broader Industry Shift: From Observation to Action

Hong Kong’s push to become a global virtual asset hub has accelerated institutional adoption. With 11 licensed crypto exchanges operating locally — including major players like HashKey and OSL — the ecosystem is maturing rapidly.

While internet-native brokers such as Futu, Tiger Brokers, and Interactive Brokers were early entrants, traditional financial institutions are now following suit. Several major banks and securities firms are actively exploring licensing pathways or forming partnerships with existing platforms.

According to Haitong International’s research team, there are multiple entry strategies available:

“Expect more international subsidiaries of mainland brokers to pursue Type 1 license upgrades,” said Xu Kang, Head of Financial Institutions Research at Huachuang Securities. “Firms with strong retail client bases will be particularly motivated to enter this space.”

Future Outlook: Expanding Across the Virtual Asset Value Chain

Looking ahead, traditional financial institutions are poised to expand beyond simple brokerage functions into deeper roles across the digital asset value chain, as highlighted by CITIC Securities.

1. Brokerage Services

By integrating with licensed exchanges or developing proprietary platforms, brokers can offer:

2. Investment Banking

As blockchain companies grow, demand for IPO underwriting, SPAC listings, and M&A advisory rises. Brokers can leverage their existing investment banking expertise to serve Web3 startups and crypto-native firms seeking public market access.

3. Asset Management

From crypto index funds to yield-generating structured notes, there’s growing demand for professionally managed digital asset products tailored to risk profiles of mainstream investors.

4. Equity Investments

Some brokers may choose direct stakes in promising blockchain ventures or infrastructure providers — similar to how banks invest in fintech unicorns.

5. Tokenization of Real-World Assets

One of the most transformative trends is the tokenization of equities, bonds, real estate, and commodities. Brokers can play a central role in issuing, distributing, and trading these digital representations of physical assets.

Frequently Asked Questions (FAQ)

Q: What does GTJA International’s license upgrade mean for retail investors?
A: It means Hong Kong retail investors can now trade approved virtual assets through a regulated Chinese-backed broker for the first time, increasing trust and accessibility.

Q: Can GTJA International custody crypto directly?
A: Not independently. Like most brokers without a Type 7 license, it relies on partner exchanges for actual trade execution and custody via secure API integrations.

Q: Is this trend limited to Hong Kong?
A: No. While Hong Kong leads in Asia due to clear regulations, similar moves are underway in Singapore, Japan, Switzerland, and the UAE as global finance embraces digital assets.

Q: How do brokers ensure security when handling crypto transactions?
A: Through multi-layered safeguards including cold storage partnerships, MPC wallets, strict KYC/AML checks, real-time transaction monitoring, and insurance coverage.

Q: Will other Chinese brokers follow GTJA’s lead?
A: Yes. Analysts expect firms like CICC, Haitong Securities, and Ping An Securities to pursue similar upgrades, especially those with strong international arms already present in Hong Kong.

Q: Are these virtual asset services available globally?
A: Currently restricted to Hong Kong clients due to jurisdictional licensing. Expansion depends on local regulations in other markets.

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Core Keywords

With GTJA International leading the charge, the convergence of traditional finance and digital assets is no longer theoretical — it's operational. As more institutions align with regulatory frameworks and investor demand grows, Hong Kong is solidifying its role as Asia’s premier gateway for institutional crypto adoption.