Merchants unit surges as CMBI approved for virtual asset license

China Merchants Securities (6099) once surged as much as 22 percent on Tuesday after CMB International Securities became the first brokerage backed by a mainland bank to win regulatory approval to offer virtual asset trading services in the city.

CMB International Securities has been granted a license by the Securities and Futures Commission to provide virtual asset trading, and was also approved to act as an introducing broker for licensed virtual asset trading platforms.

The city's equity watchdog has so far approved 43 licensed entities in Hong Kong to provide virtual asset trading services, according to its data.

Shares of China Merchants Securities peaked at HK$18.68 before paring gains to trade around 4 percent higher at HK$15.88 at the close. China Merchants Bank (3968) also rose as much as 3 percent at one point, though the gains later faded, as it dipped about 1 percent at the close.

STAFF REPORTER