BRIEF: Yunfeng Financial licensed to deal in virtual assets

Fintech insurance provider Yunfeng Financial Group Ltd. (0376.HK) said on Tuesday the Hong Kong Securities and Futures Commission approved a request to upgrade its current securities-dealing license to also include virtual asset-dealing services.

The company’s shares shot up 28% on Wednesday after the announcement, sending them to a seven-year high to close HK$5.42. Shares of other Hong Kong-listed companies have recorded similar large gains after announcing other virtual asset initiatives.

Last month, Yunfeng reported its revenue rose 23% year-on-year to HK$686 million ($88 million) in the first half of this year, while its profit rose 142% to HK$486 million.

Cryptocurrency mining and trading are illegal in Mainland China, but are legal in Hong Kong, where many companies are experimenting with investing in virtual assets and providing related services. In one of the latest moves, Hong Kong launched a stablecoin regulatory regime on Aug. 1, laying out licensing and regulatory requirements for stablecoin issuers.

By Doug Young

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