Chinese State-Owned Greenland’s Bold Venture
Greenland Financial Technology Group, a subsidiary of the state-owned Chinese conglomerate Greenland Holdings, is reportedly seeking a virtual asset trading license in Hong Kong. As the South China Morning Post reveals, this marks the first such endeavor by a state-owned Chinese company.
A New Business Venture Under SFC Regulations
According to Greenland Financial Technology Group CEO James Geng Jing, the company is in the process of establishing a new unit dedicated to virtual asset trading. This new entity is slated to apply for licensing in Hong Kong, in compliance with the forthcoming Securities and Futures Commission (SFC) rules.
As of June 1, these new regulations will necessitate that all virtual asset trading platforms operating in the region possess the requisite license. Despite its unsuccessful bid for a virtual bank license in 2018, Greenland already boasts two licenses from the SFC for securities advising and asset management.
The new Greenland unit will delve into trading of cryptocurrencies, nonfungible tokens (NFTs), and products related to carbon emissions.
Leveraging Singapore Experience for Hong Kong Expansion
Greenland Financial Technology Group is no stranger to digital banking, having obtained a digital banking license in Singapore in 2020. Reflecting on this experience, Geng stated, “After providing digital banking in Singapore, along with our expansion in digital business in mainland China over the past five years, we are confident that we are ready to step into Hong Kong now.”
He emphasized the crucial role of robust regulation and investor protection in fostering Hong Kong’s development as a virtual asset trading hub.
Greenland’s Diversification into Fintech
Greenland Holdings, a Shanghai-based real estate developer 46.4% owned by the Shanghai municipal government, has been diversifying its portfolio over recent years, with fintech being a significant sector of interest. Its financial technology subsidiary, Greenland Financial Technology Group, is entirely owned by Greenland Holdings.
Competition in the Virtual Asset Trading Space
In the realm of virtual asset trading, Greenland may face competition from cryptocurrency exchanges Huobi Global and OKX, which have also applied for Hong Kong virtual asset trading licenses. Despite global trends, Hong Kong is pushing ahead in developing its digital asset market, potentially posing a challenge to the United States as the global hub of the crypto industry.
