Guotai Junan International Holdings (01788.HK) saw its shares skyrocket by 33.78% in morning trading on Thursday, continuing an extraordinary rally that began the previous day. This surge comes on the heels of a staggering 198.4% gain on Wednesday, propelling the stock to levels not seen since early 2018.

The catalyst for this remarkable price movement is the company's recent regulatory breakthrough. Guotai Junan Securities (Hong Kong), a subsidiary of Guotai Junan International, received approval from the Hong Kong Securities and Futures Commission (SFC) to offer virtual asset trading services. This upgraded license allows the brokerage to provide crypto dealing services through omnibus accounts with SFC-licensed platforms, positioning it as one of the first traditional brokerages in Hong Kong to enter the regulated digital asset space.

The stock's performance has been marked by extreme volatility, with shares surging as much as 90% in early trading to reach a high of HK$7.02, before experiencing a sharp pullback. This movement reflects both the excitement surrounding the company's entry into the cryptocurrency market and the speculative nature of such rapid price increases. Analysts are drawing comparisons between Guotai Junan International and U.S. platforms like Robinhood, highlighting the potential for traditional financial institutions to capitalize on the growing interest in digital assets. As Hong Kong continues to advance its regulatory framework for cryptocurrencies, including the recent passage of a landmark stablecoin bill, Guotai Junan International's latest approval signals a significant step in the integration of traditional finance with the burgeoning crypto sector.