# First Chinese State-Backed Crypto Broker in Hong Kong Goes Private

Guotai Junan International, the pioneer in licensed crypto trading among Chinese firms, receives a 44% premium buyout offer.

- **Source:** [CryptoCurrency – Finance Magnates | Financial and business news](https://brifing.si/source/b5a2ce51-ec8e-4702-886b-778de5971605)
- **Published:** 2026-08-10
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://www.financemagnates.com/cryptocurrency/the-first-chinese-broker-cleared-for-crypto-in-hong-kong-is-going-private/>
- **On Brifing:** https://brifing.si/s/a6ddec01-ca17-4ac4-901f-0ade5daf7291

## Privatization Offer at 44% Premium

Guotai Haitong Securities proposed to take its Hong Kong-listed subsidiary Guotai Junan International private at a valuation of HK$28.6 billion (US$3.6 billion). The HK$3.00 per share cash offer represents a 44.2% premium over the last closing price before trading suspension. The parent already controls 66% of shares, with the remaining to be canceled upon delisting from Hong Kong exchange.

## Pioneer in State-Backed Crypto Trading

Target company Guotai Junan International became the first Chinese state-backed brokerage authorized by Hong Kong's Securities and Futures Commission (SFC) for virtual asset dealings. Its June 2025 license upgrade enabled bitcoin, ether and tether transactions for clients - a first among China-affiliated financial institutions in Hong Kong's evolving crypto landscape.

## Financial Performance Metrics

Guotai Junan International reported 2025 net profit surged 287% to HK$1.35 billion, with revenue up 41% to HK$6.23 billion. Return on equity improved dramatically from 2.3% to 8.7% year-over-year. The HK$3.00 offer price stands at 1.8 times audited 2025 net asset value, while representing 46.5% premium to 30-day average closing price.

## Mainland Regulatory Crackdown

China Securities Regulatory Commission (CSRC) imposed total fines of US$331 million on May 22 against Futu Holdings and UP Fintech (parent of Tiger Brokers) for unauthorized offshore trading channels. Under an eight-agency State Council plan, existing mainland clients of these brokers face two-year transition period allowing only sell orders and withdrawals.

## Hong Kong's Crypto Expansion

Hong Kong currently hosts 12 licensed virtual asset trading platforms, with SFC approving them in batches post-inspection. The forthcoming Virtual Asset Licensing Bill will cover over-the-counter trading and custody services. Guotai Junan International's license permits trading through omnibus arrangements with licensed platforms rather than operating its own exchange.

## Regulatory History

Guotai Junan Securities previously paid HK$10.1 million (US$1.3 million) SFC fine in 2023 for client identity check failures. Guotai Junan International had suspended mainland client accounts in 2023 before quietly removing the notice. The current privatization announcement makes no reference to these regulatory actions.

## Industry Parallels

While Tiger Brokers promotes its upgraded license offering 0.2% trading fees with no custody charges, parent UP Fintech booked quarterly losses after complying with CSRC's mainland account closures. Futu continues Hong Kong expansion despite local challenges including a HK$125 million asset freeze tied to suspected IPO fraud.

## Long-Term Strategic Shift

Guotai Haitong states full ownership will enable long-term investments 'free from rapidly changing market pressures.' The crypto license's post-delisting status remains undisclosed. The parent pays 1.8x book value for a business generating HK$1.35 billion profit last year, signaling confidence in Hong Kong's regulated crypto future despite mainland restrictions.

## Sources covering this story

- https://www.financemagnates.com/cryptocurrency/the-first-chinese-broker-cleared-for-crypto-in-hong-kong-is-going-private/ — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._