China Merchants Securities stock jumps on CMBI crypto trading approval

Shares of China Merchants Securities (HK:6099) rose sharply after its subsidiary, CMB International Securities Ltd (CMBI), received regulatory approval to offer cryptocurrency trading services. The development has drawn attention from both the financial and cryptocurrency sectors and marks a significant step in Hong Kong’s efforts to position itself as a centre for digital asset activity.
CMBI receives virtual asset licence
The Hong Kong Securities and Futures Commission (SFC) has issued a virtual asset licence to CMBI, making it the first brokerage backed by a Chinese bank to receive such approval in the city. Following the announcement, shares of China Merchants Securities surged by over 20 percent to HK$18.68 ($2.38 USD) before closing at HK$16.04 ($2.04 USD), representing a 5.4 percent gain, reported by Investing.com. The market response reflects growing investor interest in regulated cryptocurrency developments.
Hong Kong advances crypto regulatory framework
To establish itself as a regional hub for digital assets, Hong Kong has introduced updated legislative frameworks, implemented supportive policies for blockchain firms, and begun licensing traditional financial institutions such as CMBI to operate in the virtual asset sector. These initiatives contrast with the more restrictive cryptocurrency policies in other major Chinese cities.
The licence allows CMBI to offer a range of regulated virtual asset services to professional investors, including cryptocurrency trading, secure custody of digital assets, and advisory services related to investment strategy, risk management, and compliance. This approval enables CMBI to operate in the digital asset space with a scope similar to its traditional financial services.
Broader industry movement and regulatory context
CMBI is not alone in this shift. Guotai Junan International (HK:1788) has also obtained crypto-related licences, highlighting a broader trend among mainland-affiliated brokerages using Hong Kong as a platform to access the global digital asset market. This aligns with Hong Kong’s regulatory approach, which supports controlled innovation in digital finance.
Although cryptocurrency trading remains prohibited on the Chinese mainland, Hong Kong’s regulatory progress appears to have tacit support from Beijing. While it does not provide direct access for mainland investors, the central government is allowing Hong Kong to take the lead, potentially as a pilot for future policy development.
Joshua Chu, a lawyer and co-chair of the Hong Kong Web3 Association, commented that while CMBI now has regulated access to Hong Kong’s crypto market, it must operate within strict legal boundaries.
Chu stated, “By securing this licence, CMBI gains regulated access to Hong Kong’s dynamic crypto market, yet it must operate within strict boundaries that prevent direct mainland participation, reflecting the delicate balance of innovation and legal constraint.”
Upcoming stablecoin regulation
Hong Kong’s new stablecoin ordinance will come into effect on 1 August 2025. The regulation will require stablecoin issuers to obtain licences, introducing additional compliance obligations for institutions like CMBI that intend to support assets such as USDT or USDC.
The entry of regulated financial institutions into the digital asset sector signals a broader shift towards institutional adoption. As regulatory clarity improves, the integration of traditional finance with digital asset markets is expected to accelerate.