Hong Kong stocks Guotai Junan International (01788.HK) surge over 90% at market open.

Hong Kong stocks Guotai Junan International (01788.HK) surge over 90% at market open.

Hong Kong-listed shares of Guotai Junan International Holdings (01788.HK) surged by over 90% at the market open on Wednesday, reaching their highest level since early 2018. The significant increase was attributed to the regulatory approval granted to the company's Hong Kong subsidiary for virtual asset trading services.

The Hong Kong Securities and Futures Commission (SFC) upgraded the license of Guotai Junan Securities (Hong Kong), allowing the brokerage to offer crypto dealing services through omnibus accounts with SFC-licensed platforms. This approval positions the company to tap into Hong Kong’s growing digital asset market, which has been bolstered by recent regulatory initiatives [1].

The approval comes amidst a broader trend of regulatory advancements in the crypto space. Last month, Hong Kong’s legislature passed a landmark stablecoin bill, introducing a licensing framework for fiat-referenced stablecoin issuers. Additionally, Bitcoin reached a record high last month as both the U.S. and Hong Kong advanced significant regulatory initiatives.

The market response to the news was immediate and positive, with shares surging as much as 101.6% to HK$2.50, their highest level since early 2018. As of 05:10 GMT, shares were trading 69% higher at HK$2.09.

Investors and financial professionals should closely monitor Guotai Junan International's progress in the digital asset market and the broader regulatory developments that could impact the company's performance.

References:
[1] https://www.investing.com/news/stock-market-news/guotai-junan-intl-shares-surge-over-100-on-crypto-license-win-4109495