On March 27, Guofu Innovation Co., Ltd. (00290.HK) (hereinafter referred to as “Guofu Innovation”) issued an announcement on the Hong Kong Stock Exchange stating that the board of directors has approved a cash budget for investing in Bitcoin (BTC) and subscribing to Hong Kong compliant virtual asset funds within a one-year period. This is another major capital move following the company's earlier layout of a series of virtual asset industry chains. This move also shows once again Guofu Innovation's determination to further develop virtual assets and related financial fields.

Virtual asset industryBull market returns, Hong KongActive encouragement creates good opportunities

Since the beginning of 2023, the cryptocurrency market has shown a spectacular round of strong bull market. As the anchor of the value of the coin market and the peak of consensus belief, Bitcoin rose from less than 17,000 US dollars/coin to a maximum of over $73,000. Meanwhile, the US Securities Regulatory Commission, which has always been known for its strict regulations, finally opened the floodgates on January 10, 2024: it approved the first batch of 11 Bitcoin spot ETFs to land on US stocks.

“The trend of success is unstoppable; the wise ride the waves”. Since the “Policy Declaration on the Development of Virtual Assets in Hong Kong” was issued in October 2022, the Hong Kong Government has continuously supported and encouraged all sectors to participate in and develop the virtual asset industry in Hong Kong:

On October 30, 2022, it was announced that a $4 billion technology fund will be established to support blockchain and Web 3.0 technology enterprises to start up and authorize the public sale of virtual asset futures ETFs; two digital currency exchanges, HashKey Exchange and OSL Digital Securities, were successively approved; and in August 2023, it was announced that listed exchanges can sell to retail investors.

The Pearl of the Orient has been shining for 100 years, and now Hong Kong is shining brightly in the blockchain and Web 3.0 fields. In such an open and enlightened regulatory environment from top to bottom, from the inside and outside, a large number of technology+financial start-ups have sprung up with Victoria Harbour as their base.

Guofu Innovation has long been rooted in Hong Kong. In the past, it has carried out financial business in Hong Kong with multiple subsidiaries. The group holds the Hong Kong Securities Regulatory Commission's No. 1, 4, 6, and 9 licenses as money lenders and insurance brokers. At the same time, it also has corresponding entities in mainland China and Singapore to undertake diversified financial services. As a multinational financial group with strong sensitivity to the times and strong capital strength, Guofu Innovation enthusiastically embraces the trend and is actively involved in promising blockchain and Web 3.0 start-ups through equity investment.

shareholdingLay out the virtual asset ecosystem,National wealth innovationTransforming into a comprehensive virtual assetCompliance flagship company 

Actively transforming from a traditional financial enterprise to a virtual asset technology company is an internal investment logic that can be followed when Guofu Innovation continues to explore and invest in startups in the blockchain and Web 3.0 fields. Among them, the active deployment of “shovel-type” and “water-selling” technology enterprises making money in the field of virtual asset management is the most important characteristic of Guofu Innovation's foreign investment.

According to information, Guofu Innovation's equity investment layout in virtual asset-related fields has several major actions:

(1) Invest in virtual asset management company MaiCapital. The company manages two digital currency and blockchain-related funds through wholly-owned subsidiaries in Hong Kong: Blockchain Opportunity Fund and Bitcoin+ Investment Fund. The former is a cryptocurrency quantitative hedge fund, which received the honorary ranking of the top 3 Asian private equity hedge funds in 2021; the latter is an active quantitative fund with blockchain-related assets. Currently, the two funds are gaining fame in Hong Kong along with the arrival of the virtual asset bull market.

(2) Invest in Yuancoin Technology, a stored value payment instrument company. The company holds a stored value payment instrument (SVF) license issued by the Hong Kong Monetary Authority, and also has the only SVF license for business-related financial services in Hong Kong. It also plans to launch a Hong Kong-compliant Hong Kong dollar stablecoin. Guofu Innovation, which is already familiar with the financial business, is paying close attention to the integration of technology and finance under the new technology and trend of the times, and is further pursuing the added value of financial business with the power of technology. Yuancoin technology provides a better opportunity for national wealth innovation to transform.

(3) Investment digital asset bank SEBA Bank. The company is rooted in the Swiss financial sector known for its neutrality, strict confidentiality, and security, and was one of the first digital asset banks in the world to obtain banking and securities dealer licenses from Switzerland. Guofu Innovation indirectly holds SEBA Bank shares, which will not only benefit financially, but also increase credit in terms of compliance and reputation.

(4) Invest in G-Rocket, a science and innovation accelerator. In the process of transformation from a traditional financial enterprise to a blockchain cutting-edge technology finance company, as an enterprise that not only looks up to the starry sky of blockchain technology, but also works hard on the ground, Guofu Innovation uses G-Rocket to provide services such as government policy promotion, offline enterprise support, talent recommendation and matchmaking, investment and financing matchmaking, etc., not only to increase the company's financial business stock, but also to facilitate the discovery of high-quality Web 3.0 projects and early equity involvement.

Comprehensive virtual assetsCompliance flagship companies test the waters to buy coins,National wealth innovationThe future performance of the capital market is full of imagination 

As can be seen from the management of the five major projects mentioned above, the strong optimism and forward-looking layout of the virtual asset industry is the most distinctive feature of Guofu Innovation's external layout. Meanwhile, in the process of building an investment map in the virtual asset field, Guofu Innovation has also gradually transformed into a comprehensive virtual asset compliance flagship company that is open, embraces the frontier, and has seen initial investment results.

Benefiting from the expectation that the US dollar will soon enter a cycle of interest rate cuts, Bitcoin's call options have continued to rise recently, which has become an observation window for understanding future cryptocurrency markets in advance. Industry insiders said, “It is conservatively estimated that the high price point of this round of bitcoins will reach 100,000 US dollars.”

“This means that Guofu Innovation's real money investment budget for virtual assets is likely not only to bring financial benefits to the company, but more importantly, by actually testing the waters of investing, holding, and sensing virtual assets such as Bitcoin, it will further help the company's understanding and layout in terms of ecological investment in virtual asset startups.” The above industry insiders commented this way.

Another long-term investor believes that as a listed company dedicated to transformation, Guofu Innovation (00290.HK) invests real money in virtual assets such as Bitcoin, which will help show investors the company's determination and management strength to embrace cutting-edge technology, implement operational transformation, and focus on the field of virtual asset technology. This is not only a move by the company to strengthen the transmission of information to the market and boost market confidence, but also the professionalization of the company's board of directors, the company's platformization, the younger generation of management, and the performance of the capital market and investors. This move is also a firm implementation of the company's philosophy of “investment drives investment banks, innovation feeds back tradition”. Therefore, we can boldly expect more reasonable and reasonable expectations for the future business development of Guofu Innovation, which is undergoing transformation, and expect the company to bring unlimited possibilities to the capital market.