Guotai Junan International issues the "first" public sale digital native bond by a Chinese securities firm: Another milestone in Hong Kong's financial innovation.

In the context of the digital finance wave sweeping across the globe, Hong Kong is actively consolidating its position as an international financial center. Recently, Guotai Junan International successfully issued the first batch of public sale digital native bonds through HSBC's Orion platform, with a scale not exceeding 300 million USD and a term of 3 years, acting as the lead global coordinator and settlement delivery agent. The bond is issued based on Distributed Ledger Technology (DLT), featuring characteristics such as digitization, programmability, and automatic execution, aimed at enhancing transaction transparency and dropping settlement risks and costs. Guotai Junan International had previously submitted a business plan to the Hong Kong Securities and Futures Commission and has been confirmed to proceed with the related issuance.

1. The Significance of the First Public Sale of Digital Native Bonds by Chinese-funded Securities Firms

This issuance is the first public sale digital native bond issued by a Chinese brokerage firm, adopting a direct issuance structure, denominated in US dollars, with a scale not exceeding 300 million US dollars and a term of 3 years. Cathay Financial Holdings acts as the lead global coordinator and settlement delivery agent, using HSBC's "Orion" as the digital asset platform.

Digital bonds are a type of bond issued using blockchain or distributed ledger technology. Their core features include digitization, programmability, and automation, which offer higher transparency and can drop settlement risks and costs. In recent years, Guotai Junan International has continuously made breakthroughs in the field of financial innovation, actively leading the innovative development of digital finance and digital asset business. This issuance of digital bonds is one of its important measures in deploying blockchain technology and digital finance. In the first half of 2025, the company submitted a digital bond issuance business plan to the Hong Kong Securities and Futures Commission, which confirmed that there were no further issues with the plan, officially launching the digital bond issuance business.

Mr. Zhang Xueming, Chief Financial Officer of Guotai Junan International, stated: "As the first Chinese brokerage firm to successfully issue a public sale of digital native bonds, we have fulfilled our firm commitment to financial innovation, demonstrating the company's expertise in the field of digital finance and contributing to the development of digital assets. At the same time, this transaction not only enhances the operational efficiency and transparency for clients and investors but also solidifies Guotai Junan International's leadership position in pioneering new-generation capital market solutions."

2. HSBC Orion platform: Infrastructure for digital bonds

Mr. John O’Neill, head of HSBC Digital Assets and Currency Group, stated: "We are very pleased to assist Guotai Junan International in completing the first digital bond issued by a Chinese brokerage in Hong Kong. This transaction fully demonstrates the capabilities of HSBC's 'Orion' to accommodate the needs of more digital bonds and issuers. As more and more enterprises and financial institutions understand the advantages of digital bonds, HSBC will continue to be committed to enhancing the liquidity of digital fixed income products."

HSBC "Orion" is a distributed ledger technology (DLT) platform established by HSBC, connected to the Central Bond Settlement System (CMU), serving as the operator of the DLT platform for the issuance and settlement of digital native notes, among others.

III. Future Outlook: Cross-Border Digital Asset Circulation and Digitalization of Green Finance

The company will take this issuance as an opportunity to continuously explore innovative directions such as cross-border digital asset circulation and the digitalization of green finance, dedicated to providing more digital solutions for the global financial market, assisting in the intelligent transformation and sustainable development of the international financial system.

Conclusion:

Guotai Junan International issued the first public sale of digital native bonds by a Chinese brokerage, marking another important milestone in Hong Kong's digital finance sector. This initiative not only showcases Guotai Junan International's leadership in financial innovation but also injects new momentum into Hong Kong's efforts to solidify its status as an international financial center.