Chinese State-Owned Enterprise Greenland Holdings Plans to Trade Virtual Assets in Hong Kong
Greenland Holdings, the largest house developer in Shanghai and partially owned by the Chinese government, plans to enter the digital trading industry in Hong Kong, according to South China Moring Post.
The company intends to apply for a license to trade virtual assets, including cryptocurrencies, non-fungible tokens (NFTs), and products related to carbon emissions. This move makes Greenland the first state-owned enterprise to express interest in Hong Kong’s digital trading market, highlighting the city’s growing reputation as a hub for virtual assets.
James Geng Jing, CEO of Greenland Financial Technology Group, a subsidiary of Greenland Holdings, stated that applying for a virtual asset operator’s license in Hong Kong would diversify their business and expand their international presence. Geng emphasized Hong Kong’s position as an international city and its connection to China as the motivation for this strategic move. He further explained that the timing is ideal due to Hong Kong’s new regulatory regime for virtual asset trading platforms.
The Securities and Futures Commission (SFC), Hong Kong’s securities watchdog, proposed new rules for retail participation in cryptocurrency trading earlier this year. Starting June 1, licensed virtual-asset platforms will allow retail investors to purchase tokens with significant market capitalization, such as bitcoin and ether. Under the new rules, all centralized trading platforms operating in Hong Kong or marketing their services to Hong Kong investors must obtain a license from the regulator.
Greenland Financial Technology will establish a new company dedicated to virtual asset trading, and this subsidiary will apply for the necessary license from the SFC. If approved, the company aims to trade cryptocurrencies, NFTs, and carbon emissions-related products. Geng emphasized that all plans are subject to SFC approval, and Greenland intends to strictly adhere to Hong Kong regulations.
This expansion into digital business marks Greenland’s second attempt to enter the Hong Kong market. In 2018, the company applied for a virtual bank license but was not among the approved applicants. However, Greenland gained experience in providing digital banking services in Singapore, where it led a consortium that obtained a digital bank license in 2020. Geng highlighted Greenland’s confidence in entering Hong Kong, citing the company’s 30 years of experience as a state-owned enterprise.
Geng expressed support for the SFC’s regulation of virtual asset trading, emphasizing the importance of sound regulation and investor protection for Hong Kong to develop as a virtual asset trading hub. He mentioned the collapse of FTX cryptocurrency exchange and the failure of regional banks as cautionary examples that highlight the need for preventive measures in Hong Kong.
Greenland Holdings, a global Fortune 500 company, has diversified its business beyond property development into finance, retail, hotels, and digital ventures. The company has already obtained two licenses from the SFC in 2016 for securities advisory and asset management.
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