Brokerage Sector Surges as Guotai Junan Gains Virtual Asset Trading Approval

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The Hong Kong Securities and Futures Commission (SFC) has approved Guotai Junan International to upgrade its existing securities trading license to include virtual asset trading services and related advisory capabilities. This landmark development allows clients to trade major cryptocurrencies such as Bitcoin and Ethereum, along with stablecoins like Tether, directly on Guotai Junan International’s platform. As the first Chinese-funded brokerage in Hong Kong to offer comprehensive virtual asset services, this milestone marks a pivotal shift—traditional financial institutions are now actively integrating into the digital asset ecosystem, opening new revenue streams and setting a precedent for broader industry transformation.

Market Momentum Fuels Brokerage Growth

Recent regulatory and macroeconomic developments have created a favorable environment for the securities sector. The China Securities Regulatory Commission (CSRC) recently released a revised draft of the Securities Company Classification and Evaluation Measures for public consultation. Key updates include refining evaluation criteria to better reflect institutional functionality, streamlining business development indicators, and encouraging small- and medium-sized brokerages to pursue differentiated, specialized operations. These changes aim to drive high-quality growth across the industry.

Simultaneously, multiple government bodies—including the People’s Bank of China, the National Development and Reform Commission, and the Ministry of Finance—jointly issued the Guiding Opinions on Financial Support for Boosting and Expanding Consumption. The policy emphasizes strengthening capital market functions by promoting long-term institutional investor participation, thereby enhancing market stability and supporting sustainable economic expansion.

Market activity has responded strongly. A-share trading volume has exceeded RMB 1 trillion for 19 consecutive trading days, significantly boosting brokerage commission income. Meanwhile, Hong Kong’s equity financing totaled HKD 213.3 billion in 2025, a year-on-year increase of over 300%, with IPO fundraising reaching HKD 77.99 billion—up more than 500%. These figures highlight robust demand for capital market services and present substantial growth opportunities for investment banking divisions.

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Sector-by-Sector Impact Analysis

Brokerage Sector: Direct Beneficiary of Policy and Volume Gains

The brokerage industry stands at the epicenter of this transformation. Rising trading volumes directly enhance brokerage revenues, while regulatory refinements improve operational efficiency and strategic clarity. The introduction of virtual asset trading adds a new dimension to revenue models, combining traditional brokerage strengths with next-generation financial products.

Analysts at Dongwu Securities suggest that sustained market activity and ongoing reforms in merger and acquisition (M&A) markets could serve as strong catalysts for sector performance. With supportive policies—such as coordinated measures to stabilize stock markets—continuing to take effect, fundamentals across the brokerage space are poised for improvement.

Citigroup Research notes that under the broader national strategy of aligning finance with real economy development, the updated classification framework incentivizes securities firms to innovate and specialize, ultimately deepening market segmentation and enhancing service quality.

Digital Currency Ecosystem: Institutional Validation Accelerates

Guotai Junan International’s licensing breakthrough signals growing regulatory acceptance of digital assets. As a trusted traditional financial institution enters the crypto space, it lends credibility to the sector, reinforcing market legitimacy and attracting risk-averse investors.

This institutional adoption is expected to drive increased compliance standards, improve market transparency, and encourage further product innovation—such as tokenized funds, crypto-backed lending, and structured digital products. Broader participation from regulated entities may also accelerate mainstream adoption of blockchain-based financial services.

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Military & Aerospace: Capital Markets Power Innovation

Industries requiring significant capital investment—such as defense, aerospace, and advanced manufacturing—are benefiting from improved access to long-term funding. With policies encouraging institutional money inflows into capital markets, these sectors gain more stable financing channels essential for R&D and large-scale production cycles.

Recent outperformance in shipbuilding, aviation, and naval technology sub-sectors reflects investor confidence in sustained government support and technological advancement.

Diversified Financial Services: Synergy Across Segments

Beyond traditional brokerages, diversified financial institutions are seeing enhanced cross-sector collaboration opportunities. Integrated financial groups can now leverage synergies between wealth management, asset management, and emerging digital asset services to deliver holistic client solutions.

Regulatory support for real economy financing further expands business potential, especially in areas like green finance, inclusive finance, and fintech innovation.

Technology & Innovation: Improved Access to Capital

The new financial guidelines explicitly support qualified enterprises across consumer supply chains—including tech startups—in accessing capital through IPOs or listings on platforms like the New Third Board (NEEQ). This lowers barriers for innovation-driven companies seeking funding for research, product development, and market expansion.

Performance in growth-oriented indices underscores this trend: the ChiNext Index has shown strong gains, with the ChiNext 50 outperforming benchmarks, reflecting rising investor appetite for high-growth technology firms in sectors such as AI, semiconductors, and new energy.

Key Listed Companies Poised for Growth

Frequently Asked Questions

Q: What does a virtual asset trading license allow brokerages to do?
A: It permits regulated firms to offer cryptocurrency trading services—including Bitcoin, Ethereum, and stablecoins—alongside professional advisory services, under strict compliance frameworks set by financial regulators.

Q: How does increased trading volume benefit brokerages?
A: Higher daily turnover directly increases commission income from equity trades. Sustained activity also boosts demand for margin financing, derivatives, and wealth management products.

Q: Is institutional involvement in crypto safe for retail investors?
A: Yes. Institutional entry brings stricter oversight, better custody solutions, transparent pricing, and regulated product offerings—significantly reducing risks compared to unregulated platforms.

Q: Will more Chinese brokerages apply for crypto licenses?
A: Likely. Guotai Junan’s approval sets a benchmark. Other major players may follow once they meet SFC requirements around risk control, anti-money laundering systems, and investor protection.

Q: How do policy changes support long-term market stability?
A: By incentivizing quality over quantity in brokerage performance evaluations and channeling long-term funds into capital markets, regulators aim to reduce volatility and foster mature investor behavior.

Q: What role does fintech play in this transformation?
A: Fintech enables seamless integration of digital assets into existing platforms, improves user experience through AI-driven tools, and supports secure, scalable infrastructure for next-generation financial services.

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Core Keywords

This evolving landscape underscores a structural shift in China’s financial markets—where tradition meets innovation, regulation enables progress, and investor opportunity expands across both conventional and digital frontiers.