The financial technology landscape in Hong Kong is witnessing a significant development as a publicly listed company, New Huo Technology, steps into the digital asset exchange arena. This move has generated considerable market attention, marking a potential shift in the region's approach to cryptocurrency services.
Introduction to New Huo Hong Kong
Reports indicate that New Huo Technology is in the process of establishing a new cryptocurrency trading platform named "New Huo HK." This initiative is particularly notable given the company's status as a Hong Kong listed entity, bringing a new level of institutional presence to the local crypto market. The exchange's current operational status is described as a trial phase, primarily serving as part of the company's broader strategy to secure necessary financial and digital asset licenses in key jurisdictions.
The platform, in its present form, offers a very limited selection of trading pairs. Available information confirms the presence of USDT/USD, BTC/USD, and ETH/USD pairs. Notably, the website currently lacks a public registration portal and explicitly states that its services are intended solely for professional investors, as defined by Hong Kong's regulatory framework.
The Key Figures and Corporate Background
The venture is linked to notable figures in the Asian cryptocurrency scene. Leon Li, a controlling shareholder and non-executive director of New Huo Technology, is a central character in this development. Following his exit from the Huobi exchange, Li has partnered with Du Jun, a co-founder of the Huobi group, to launch this new enterprise through the Hong Kong-listed vehicle.
Du Jun currently serves as the Chief Executive Officer of New Huo Technology, with Zhang Li holding the position of Chief Financial Officer. The corporate structure shows that Leon Li holds a significant majority stake, controlling approximately 53.37% of the company's issued share capital.
However, in a twist that added intrigue to the story, CEO Du Jun took to social media to clarify the company's direction. He expressed gratitude for the concern regarding New Huo Technology but explicitly stated that while the company would launch several reliable products throughout the year, a trading platform was not among them. He emphasized the company's status as a Hong Kong-listed entity regulated by the Securities and Futures Commission (SFC), urging interested parties to refer to official announcements on the Hong Kong Stock Exchange website for accurate information.
Understanding Hong Kong's "Professional Investor" Definition
A critical aspect of this story is the exchange's focus on professional investors. This classification is not arbitrary but is strictly defined under Hong Kong's Securities and Futures Ordinance. The regulation outlines three categories of professional investors:
- Institutional Professional Investors: Typically includes regulated financial institutions.
- Corporate Professional Investors: Trust corporations must hold total assets of HK$40 million (or equivalent in foreign currency) or more. Other corporations or partnerships must hold an investment portfolio of HK$8 million or more, or total assets of HK$40 million or more.
- Individual Professional Investors: A natural person must possess an investment portfolio exceeding HK$8 million in value, encompassing cash, deposits, and securities as defined by the ordinance.
This stringent requirement significantly narrows the potential user base for the New Huo HK platform, aligning its services with a high-net-worth and institutional clientele rather than the retail mass market.
New Huo Technology's Regulatory Journey
New Huo Technology's foray into digital assets is part of a longer regulatory journey. The company's history provides context for its current ambitions.
- 2020: A subsidiary of the company (then known as Huobi Technology) obtained license types 4 (advising on securities) and 9 (asset management) from the Hong Kong SFC.
- 2022: The company announced that the SFC had formally accepted its application for license type 1 (dealing in securities) and type 7 (providing automated trading services). This move signaled a clear intent to engage directly in trading activities.
- Leadership Shift: In late November 2022, a significant leadership change occurred with the resignation of the then-CEO, Wu Shupeng, who sought other business developments. Du Jun was subsequently appointed as the new Executive Director and CEO.
- Strategic Partnership: Shortly after, in December 2022, New Huo Asset Management announced a collaboration with the regulated U.S. exchange, Coinbase. This partnership aimed to position New Huo as one of the first licensed entities in Hong Kong to offer discretionary account management services for virtual assets to professional investors. This arrangement allows New Huo to manage clients' virtual asset trading accounts on Coinbase in an investment manager capacity.
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Market Implications and Future Outlook
The entry of a listed company into the crypto exchange space underscores a growing trend of traditional finance embracing digital assets. While "New Huo HK" is currently in a trial phase with limited functionality, its existence points to a maturing market where established corporate entities see viable opportunities.
The clarification from CEO Du Jun suggests that the company's immediate strategy may be more focused on its asset management and regulatory licensing goals rather than operating a retail-facing exchange. Nonetheless, the development has sparked discussions about increased competition in the region and the evolving regulatory landscape for digital assets in Hong Kong.
Frequently Asked Questions
What is New Huo HK?
New Huo HK is the name of a trial digital asset trading platform initiated by the Hong Kong-listed company New Huo Technology. It is currently part of their application process for financial licenses and is not yet officially open for business.
Who can use the New Huo HK exchange?
According to its website, the platform is intended solely for "professional investors" as defined by Hong Kong's Securities and Futures Ordinance. This typically requires individuals to hold an investment portfolio valued at HK$8 million or more.
What cryptocurrencies can be traded on New Huo HK?
Based on available reports, the trial platform only lists three trading pairs: USDT/USD, Bitcoin/USD, and Ethereum/USD. There is no reported trading volume at this stage.
Is New Huo Technology officially launching a crypto exchange?
Interestingly, the company's CEO, Du Jun, has publicly stated that while New Huo Technology will release new products, a trading platform is not among them for the current year. This suggests the "New Huo HK" site may be a provisional or exploratory project.
What other services does New Huo Technology provide?
The company, through its subsidiaries, holds licenses for advising on securities and asset management in Hong Kong. It has also announced a partnership with Coinbase to provide discretionary virtual asset account management services to professional investors.
Why is this development significant?
It represents the movement of a traditional, publicly-listed company into the digital asset space, which can signal growing institutional acceptance and a more regulated future for cryptocurrency services in the region.