The brokerage virtual asset market continues to show strong momentum.
On June 27, TF Securities (601162) surged by 10.02% to hit the daily limit-up in early trading, closing at CNY 5.16 per share by midday. This sharp rise was fueled by market excitement surrounding virtual asset licensing. Industry sources indicate that TF International Securities Group Limited (TF International), the overseas subsidiary of TF Securities, has upgraded its securities trading license to include virtual asset trading services.
Key Developments in Virtual Asset Licensing
1. TF International's Early Approval
- 2024 Annual Report Disclosure: TF Securities confirmed that TF International's subsidiary secured Hong Kong Securities and Futures Commission (SFC) approval last year to offer virtual asset trading via omnibus accounts.
- Service Scope: Unlike some competitors, TF International's license covers virtual asset trading but excludes advisory services.
2. Brokerage Industry Landmark
On June 25, Guotai Junan International Holdings Limited (01788.HK) announced becoming the first Chinese-backed Hong Kong brokerage to receive full virtual asset service approval from the SFC. Their upgraded license enables:
- Direct cryptocurrency trading (BTC, ETH, etc.)
- Stablecoin transactions (e.g., USDT)
- Virtual asset advisory services
- Distribution of virtual asset-related products including OTC derivatives
Hong Kong's Virtual Asset Regulatory Framework
The SFC categorizes virtual asset licenses into five types:
- Virtual Asset Trading Platform Operation
- Management of Portfolios with >10% Virtual Asset Exposure
- Virtual Asset Trading via Omnibus Accounts
- Virtual Asset Advisory Services
- Virtual Asset Trading Platform Referral Agents
As of June 26, 41 institutions hold omnibus account trading licenses, including:
- TF International
- Haifu Securities (owned by East Money)
- Futu Securities (Hong Kong)
- Interactive Brokers
- China Mid-Term Securities
Market Potential and Challenges
Growth Opportunities
- Analyst Projections: Shenwan Hongyuan Research estimates 40+ brokers now hold upgraded licenses, with potential for more Chinese brokerages to enter the market given their extensive Hong Kong subsidiaries.
- Industry Expert Insight: Xu Kang, Chief Financial Analyst at Huachuang Securities, notes Guotai Junan's early involvement in Bitcoin/ETH ETF brokerage positions them as market leaders.
Current Limitations
- Low Trading Volume: One licensed broker admitted virtual asset transactions remain negligible post-approval.
- Client Restrictions: Only Hong Kong ID holders can currently access these services—mainland China clients remain excluded.
FAQ Section
Q: What types of virtual assets can licensed brokers trade?
A: Approved platforms typically support major cryptocurrencies (Bitcoin, Ethereum) and stablecoins like USDT.
Q: How does Hong Kong's virtual asset regulation compare globally?
A: Hong Kong's SFC has established a clear licensing framework, positioning it as a regional leader in regulated digital asset markets.
Q: Will more Chinese brokerages obtain virtual asset licenses?
A: Analysts expect increased participation given the 30+ Chinese brokerages with Hong Kong operations, especially those with strong client bases.
Q: What's the investor eligibility criteria for virtual asset trading?
A: Currently, only Hong Kong residents can access these services through licensed brokers.
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This analysis excludes promotional content and adheres to regulatory guidelines for financial reporting.