GUOTAI JUNAN I (01788) fell more than 5% intraday, hitting a low of HK$2.57, marking a drop of over 63% from its year-high of HK$7.02. At the time of writing, shares were down 4.78% at HK$2.59, with a turnover of HK$153 million.

The decline follows the People's Bank of China's (PBOC) recent coordination meeting on cracking down on virtual currency trading speculation. The central bank reiterated that virtual currencies do not hold legal status equivalent to fiat currencies, lack legal tender status, and should not circulate as money in markets. It emphasized that virtual currency-related activities constitute illegal financial operations. Regarding stablecoins, the PBOC noted they fail to meet requirements for customer identification and anti-money laundering, posing risks for illicit activities such as money laundering, fundraising fraud, and illegal cross-border capital flows.

Notably, GUOTAI JUNAN I announced on August 28 that its subsidiary, under parent company Guotai Haitong Group, would launch cryptocurrency trading services for Hong Kong investors to meet growing demand. The service allows clients to trade cryptocurrencies like Bitcoin and Ethereum upon account activation.