The Hong Kong stock market witnessed a historic rally among Chinese brokerage stocks on June 25, 2025, with GTJA International Holdings (01788.HK) skyrocketing 198% after securing regulatory approval for virtual asset trading services. This breakthrough has ignited sector-wide momentum, with multiple major brokers posting double-digit gains.
Key Drivers Behind the Market Frenzy
Regulatory Milestone: GTJA International became the first Chinese-backed brokerage to receive upgraded Type 1 license from Hong Kong's Securities and Futures Commission (SFC), permitting:
- Cryptocurrency trading (Bitcoin, Ethereum, etc.)
- Stablecoin transactions (USDT, etc.)
- Virtual asset-related advisory services
- OTC derivatives issuance and distribution
Market Expansion Potential: Analysts project this will open new revenue streams for brokers through:
- Enhanced commission-based trading services
- Virtual asset IPO underwriting
- M&A advisory for crypto-native businesses
- Competitive Landscape Shift: 40 Hong Kong-based brokers have now upgraded their Type 1 licenses, with analysts expecting more international subsidiaries of Chinese brokers to follow suit.
Strategic Implications for Brokerage Firms
Business Model Opportunities
| Business Segment | Virtual Asset Integration | Example Cases |
|---|---|---|
| Brokerage | Crypto-fiat trading integration | Futu-HashKey partnership |
| Investment Banking | Virtual asset IPO underwriting | Circle's NYSE listing |
| Asset Management | Crypto-ETF distribution | Bitcoin spot ETFs in HK |
Competitive Advantages
- First-Mover Benefit: GTJA International's early licensing creates branding advantage
- Client Network Utilization: Established brokerages can leverage existing investor bases
- Cross-Border Synergies: International subsidiaries facilitate global crypto liquidity access
Industry Outlook and Investment Considerations
👉 Discover how leading platforms are bridging traditional finance with crypto markets
Growth Projections:
Hong Kong's virtual asset ecosystem now includes:
- 11 licensed trading platforms
- 40 Type 1 upgraded brokers
- 40 asset managers handling virtual assets
Recommended Investment Strategies:
- Market Leaders: Firms with comprehensive licenses and global capabilities
- High-Growth Players: Brokers demonstrating exceptional trading volume growth
- International Specialists: Companies with proven cross-border execution
FAQs: Understanding the Brokerage Crypto Boom
Q: Why did GTJA International's stock surge 198%?
A: The unprecedented jump reflected market optimism about being the first Chinese-backed broker authorized for full-spectrum virtual asset services.
Q: Will other Chinese brokers enter crypto trading?
A: Analysts expect most major brokers with Hong Kong subsidiaries to pursue license upgrades within 12-18 months.
Q: How does this impact traditional investors?
A: Investors gain regulated access to crypto markets through familiar brokerage platforms, reducing counterparty risks associated with standalone exchanges.
Q: What risks should investors consider?
A: Volatility management remains crucial, with recommended portfolio allocations below 5% for conservative investors.
The convergence of traditional brokerage services and virtual asset trading marks a transformative phase for financial markets. As regulatory frameworks mature, this integration presents significant opportunities for brokers to expand service offerings while providing investors with safer access to digital asset classes.