Yunfeng Financial, indirectly held by Jack Ma, surged 21.77% after securing Hong Kong SFC approval for virtual asset trading services, signaling rising institutional interest in the region's digital asset market.

Executive Summary

Yunfeng Financial, a company indirectly held by Jack Ma, experienced a significant stock surge of 21.77% to HK$6.6, with a total trading volume of 59.48 million shares and a turnover of HK$337.7 million. This substantial market activity followed the company's announcement of receiving approval from the Hong Kong Securities and Futures Commission (SFC) to offer virtual asset trading services. The development indicates a potentially positive shift for traditional financial institutions entering the virtual asset space in Hong Kong, contributing to increased institutional participation in the broader crypto market.

The Event in Detail

On Tuesday, Yunfeng Financial Group Ltd. (0376.HK), a fintech insurance provider, announced that the Hong Kong SFC approved its request to upgrade its existing securities-dealing license to include virtual asset-dealing services. The company's shares initially rose 28% on Wednesday, reaching a seven-year high of HK$5.42, and continued to climb, closing at HK$6.6. This aligns with a trend observed in other Hong Kong-listed companies, such as Guotai Junan International, which saw its shares surge nearly 200% after obtaining similar regulatory approval for cryptocurrency trading services in Hong Kong. Guotai Junan's stock closed at HK$3.7 on Wednesday following its announcement, marking a 185% gain over two days from its pre-announcement price of HK$1.24.

Beyond direct trading services, Yunfeng Financial has also strategically invested US$44 million to acquire 10,000 Ether as part of its reserve assets, with the intent to provide "key infrastructure support" for real-world asset (RWA) tokenization activities. The company is exploring potential applications of Ether within its insurance business and plans to increase investments in digital currencies like stablecoins. This move is part of its declared push into "frontier areas," including Web3, and a strategic reimagining of treasury management aimed at hedging against traditional market volatility, optimizing asset structure, and positioning for Web3 innovation through smart contracts and scalability.

Market Implications

This approval for Yunfeng Financial is expected to foster increased institutional adoption and liquidity within the Hong Kong virtual asset market. It signifies a growing acceptance and a maturing regulatory framework for virtual asset services within traditional finance, potentially attracting more capital and innovation to the region's crypto ecosystem in the short to medium term. The company's strategic shift into digital assets, including its investment in Ether, exemplifies how traditional financial institutions are leveraging blockchain technology to modernize treasury management. As noted by a report from Phemex, "Yunfeng's approach reflects a paradigm shift—cryptocurrencies are no longer speculative but essential infrastructure for the digital economy." This move could serve as a blueprint for broader institutional adoption, particularly across Asia.

Broader Context

Hong Kong has actively positioned itself as a leading hub for institutional crypto, with regulatory advancements creating a conducive environment for digital asset initiatives. In April 2024, Hong Kong became the first jurisdiction in Asia to approve spot Bitcoin and Ether ETFs, with regulators clarifying that Ether was not a security. Furthermore, June 2025 saw an expansion of the framework to permit crypto derivatives trading for professional investors and adjustments to tax rules to attract digital asset funds and family offices. The city also launched a stablecoin regulatory regime on August 1, laying out licensing and regulatory requirements for stablecoin issuers. This comprehensive regulatory approach includes the LEAP framework, which facilitates licensed stablecoin issuance, tokenized bonds, and broader Real World Asset (RWA) tokenization, aiming to connect digital assets with real-world applications. By July 2025, Hong Kong completed its third issuance of tokenized green government bonds, indicating an ongoing commitment to integrating digital bond issuance into public finance.