The financial sector is heating up, with brokerage stocks leading a powerful rally that’s reigniting speculation about a new bull market. In a landmark development, China’s first mainland-backed securities firm has officially entered the cryptocurrency space, triggering a massive market reaction and sending shares soaring.
Brokerage Stocks on Fire
Following a strong rally yesterday, Chinese A-share and Hong Kong-listed brokerages continued their explosive momentum today.
As of the latest data:
- Guosheng Holding and Xiangcai Shares achieved two consecutive daily trading limits (up 10% each).
- Tianfeng Securities hit the daily cap.
- East Money (Dongfang Caifu) surged over 9%.
- Cinda Securities and Guotai Haitong both gained more than 7%.
In Hong Kong:
- Guotai Junan International rocketed nearly 100% intraday — closing up 91% at HK$2.38, marking its highest level since July 2015, with a market cap now at HK$22.7 billion.
- First Shanghai Investment rose over 21%.
- Shenyin & Wanguo (Hong Kong) jumped more than 20%.
Over the past three trading sessions, the A-share securities index has climbed over 16%, while the Hong Kong counterpart gained roughly 8%. This surge comes amid growing policy support and sector-specific tailwinds.
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Historic Milestone: First Chinese Broker Approved for Crypto Trading
The standout performer — Guotai Junan International — made headlines after announcing on June 25 that it had received formal approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities license to include virtual asset trading services.
This means clients will soon be able to trade cryptocurrencies, stablecoins, and other digital assets directly through its platform.
As the first Chinese mainland-affiliated brokerage to obtain an official crypto license in Hong Kong, this move marks a pivotal moment in the convergence of traditional finance and digital assets.
Currently, Hong Kong has 10 licensed virtual asset trading platforms. Several brokers are also advancing their applications or have already secured relevant authorizations. These include:
- Futu Securities
- Tiger Brokers
- Victory Securities
- Hua Win Securities
-华盛证券 (Wasung) - Yingli Securities
- Zhanle Global Connect
- Webull Securities
- Interactive Brokers (non-Chinese)
This regulatory green light reflects broader trends in global crypto adoption — especially in Asia.
Hong Kong’s Strategic Push for Virtual Asset Leadership
In recent months, Hong Kong has accelerated its regulatory framework for digital assets:
- In February, the SFC unveiled its “A-S-P-I-Re” roadmap, outlining a comprehensive strategy for virtual asset supervision.
- In May, the city passed the Stablecoin Regulation Bill, set to take effect on August 1, 2025.
- Major tech players like JD.com and Ant Group are already positioning themselves in the stablecoin race.
According to CITIC Securities, Hong Kong is leveraging its advantages within the Guangdong-Hong Kong-Macao Greater Bay Area — including open markets and innovation ecosystems — to solidify its status as a global hub for virtual assets.
As traditional financial institutions expand into digital trading, the integration of crypto into mainstream finance is becoming not just possible — but inevitable.
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Is This a True Bull Market Signal?
The rally in brokerages isn’t happening in isolation. It follows key policy developments aimed at revitalizing capital markets:
- The new "National Nine Guidelines" have boosted market activity and investor confidence.
- The China Securities Regulatory Commission (CSRC) is revising its Securities Company Classification Evaluation Rules, encouraging differentiated business models and better performance metrics.
- Six major financial regulators, including the central bank, jointly issued guidelines to support consumption through financial services, emphasizing long-term capital inflows and market stability.
These measures are expected to enhance brokers’ ability to serve the real economy while expanding their own business scope.
Why Brokers Are Going Digital
With the rise of blockchain technology and digital assets, traditional investment banks are no longer sitting on the sidelines. They’re actively building infrastructure to offer crypto-related services — from custody to trading and wealth management.
Huachuang Non-Bank Finance predicts more brokerages with international arms will upgrade their Type 1 licenses (dealing in securities) to include virtual asset services. This will enrich the market ecosystem — especially when large, client-rich firms enter the space.
Huatai Securities notes that brokerage performance is inherently tied to capital market health. With equities markets showing strength, brokers could see significant balance sheet expansion and new revenue streams.
What’s Next? Key Trends to Watch
Looking ahead, several themes are emerging as critical for investors:
- Innovation & Transformation: Mid-sized brokerages embracing fintech, digital assets, or wealth management platforms may see disproportionate gains during bull runs.
- Resilient Leaders: Large-cap brokers with diversified revenue models, solid profitability, and low valuations offer stability amid volatility. State-owned or centrally managed firms with potential for mergers and restructuring are particularly attractive.
- Platform Play: Companies building integrated financial ecosystems — combining trading, research, asset management, and now crypto — are best positioned for long-term growth.
- Regulatory Advantage: Firms that proactively comply with evolving digital asset rules will gain first-mover advantages in licensing, trust, and customer acquisition.
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Frequently Asked Questions (FAQ)
Q: Why did Guotai Junan International’s stock surge so sharply?
A: The 91% surge was driven by market excitement over its SFC approval to offer crypto trading — a first for a mainland-affiliated broker. Investors view this as a strategic pivot into high-growth digital finance.
Q: What does “upgrading to a virtual asset license” mean?
A: It allows the firm to legally provide cryptocurrency trading services to clients under Hong Kong’s regulatory framework, including KYC/AML compliance, custody solutions, and market surveillance.
Q: Can all Hong Kong brokers offer crypto now?
A: No. Only those with specific SFC approval can operate legally. While several have applied or been approved, many are still in process. Regulatory compliance remains strict.
Q: How does this affect ordinary investors?
A: It means greater access to regulated crypto trading through trusted financial institutions. This reduces risks associated with unregulated exchanges and enhances investor protection.
Q: Is this a sign of a broader market bull run?
A: Brokerage rallies often precede broader market gains, as they benefit directly from increased trading volume and investor participation. Combined with supportive policies, this could signal early stages of a sustained upward trend.
Q: Will more Chinese brokers enter crypto?
A: Yes. Analysts expect other major brokers with international subsidiaries — especially those active in Hong Kong — to follow suit and apply for similar licenses in 2025 and beyond.
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This shift represents more than just a stock price spike — it's a structural evolution in how traditional finance engages with the future of money. As boundaries blur between fiat and digital economies, institutions that adapt fastest will lead the next wave of financial transformation.