China Taiping Investment Management (Hong Kong) Limited has been approved to upgrade its Type 1 and Type 4 licenses by the Hong Kong Securities and Futures Commission, enabling it to engage in the distribution of virtual asset funds and advisory services.

China Pacific Insurance Group's China Taiping Investment Management (Hong Kong) Limited ("Taiping Asset Management Hong Kong") announced that its existing Type 1 (securities trading) and Type 4 (advising on securities) regulated activities have been approved for upgrade by the Hong Kong Securities and Futures Commission. With immediate effect, Taiping Asset Management Hong Kong can provide distribution and investment advisory services to funds with virtual asset investment ratios exceeding 10%.

This significant development marks a crucial step for Taikang Asset Management Hong Kong in the virtual asset field, while adhering to compliance and regulatory requirements. With the completion of the aforementioned license upgrade, Taikang Asset Management Hong Kong will continue to deepen its involvement in various aspects of virtual asset-related fields, including fund distribution and investment advisory services, empowering virtual asset projects and collaborating with trusted partners to contribute to Hong Kong's sustainable and responsible development as a virtual asset center, forming a virtual asset ecosystem, and making contributions to the road towards the large-scale application of Web3.

Virtual Asset Service Provider Licensing System Background 

On January 28, 2022, the Securities and Futures Commission and the Hong Kong Monetary Authority jointly issued the "Joint Circular on Virtual Asset-Related Activities of Intermediaries", which clarifies specific regulatory requirements for distributing virtual asset-related products, providing virtual asset trading services, and providing opinions on virtual assets. According to the regulations, intermediaries intending to provide virtual asset-related services must meet regulatory requirements in multiple areas such as corporate governance, risk control, due diligence processes, and customer suitability assessments to safeguard the interests of investors. They must also apply for upgrades or relevant licenses (as virtual asset platform operators) from regulatory authorities and obtain regulatory approval before conducting related business or services. 

License upgrade is an important milestone 

The development of virtual asset-related business is an important strategic deployment of Taikang Asset Management Hong Kong in the past two years. After a long period of preparation and frequent communication with the Hong Kong Securities and Futures Commission, Taikang Asset Management Hong Kong officially obtained the approval for the upgrade of the Type 1 and Type 4 regulated activities licenses on September 22, 2023, and can now provide distribution and investment advisory services to funds with virtual asset investment ratios exceeding 10%. With this key milestone, Taikang Asset Management Hong Kong's commitment to providing virtual asset-related services to investors within the regulatory compliance framework has been witnessed. 

Taibao Asset Management Hong Kong CEO CG Zhou said: "Hong Kong is an important global financial center in history, and it has the soil to attract a large number of financial and technology-related talents. The development of virtual assets and the Web3 industry is an irresistible force worldwide. With the various policies and projects launched by the Hong Kong government for virtual assets last year, we are confident in the sustainable and responsible development of the virtual asset industry in Hong Kong. As a traditional financial institution, we are committed to introducing the governance, risk control, compliance capabilities, and experience accumulated over decades into the virtual asset business, promoting virtual asset and Web3-related funds and projects, better safeguarding the interests of investors, and helping Hong Kong move towards the global Web3 center. We believe that our unique advantages will make us one of the most trusted institutions by industry participants, laying the foundation and providing services for larger-scale funds to enter the virtual asset industry."

Virtual Asset Business Blueprint

Taibao Asset Management Hong Kong has already laid out blueprints for its layout in multiple areas of the virtual asset and blockchain ecosystem. With the approval of this license upgrade, it will also accelerate its business expansion.

In terms of fund distribution and investment advisory services, Taiping Asset Management Hong Kong will collaborate with leading investment institutions in the industry, leveraging its expertise in investment and risk management to provide advice and distribution for virtual asset investments. It will continue to launch primary and secondary market fund products that can build a secure bridge between high-quality virtual asset projects/digital currencies and investors. 

As a traditional financial institution deeply involved in the virtual asset ecosystem, Taiping Asset Management Hong Kong has also carried out a series of explorations in the RWA field, negotiating cooperation with major ecosystems, exchanges, wallet providers, and others to put various real-world assets on the chain and graft usage scenarios, striving to solve the pain points of asset quality and security, on-chain liquidity, and end users. 

As the helmsman of Taikang Asset Management's virtual asset strategy in Hong Kong, CEO CG Zhou pointed out: "In terms of asset allocation and user numbers, the development of virtual assets and Web3 is still relatively early. However, from the continuous iteration of technology and the allocation of resources by some traditional financial giants, increasing allocation in the field of virtual assets and Web3 has formed an irreversible trend. On the other hand, the application of Web3-related technologies will greatly solve the efficiency and trust issues in the circulation of real-world assets. As a traditional financial institution that complies with and adheres to the highest compliance and regulatory standards, we will also maintain great flexibility and cooperate with the most excellent and trustworthy institutions in the market to jointly leverage our strengths and bring valuable investment opportunities and solutions to the industry, in order to contribute to the development of this asset class and industry."  

About Taiping Asset Management Hong Kong

China Taiping Investment Management (Hong Kong) Limited holds licenses from the Securities and Futures Commission of Hong Kong for Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (asset management). The parent company of Taiping Asset Management Hong Kong is China Taiping Insurance Group Co., Ltd. and its subsidiary, Taiping Asset Management Co., Ltd. Taiping Asset Management Hong Kong provides clients with various asset management and investment advisory services across traditional and emerging assets, focusing on fixed income, equity, and alternative investments, leveraging its insurance asset allocation expertise from a global perspective. Virtual assets are also included in its latest investment advisory services.

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