Hong Kong-listed Zhongzefeng Plans to Invest Up to 10% of Fund Assets in Virtual Assets

On April 2, Hong Kong-listed Zhongzefeng International Group (Stock Code: 01282.HK) released its 2024 annual financial results. The announcement disclosed that its subsidiary, Atlantic Asset Management Limited, has received approval from the Hong Kong Securities and Futures Commission (SFC) to invest up to 10% of its managed assets (AUM) into virtual assets. This marks a significant step for Zhongzefeng in exploring opportunities in the virtual asset sector.

Zhongzefeng International Group, founded in Hong Kong, is primarily engaged in property investment and development, supply of smart manufacturing equipment, and industrial park development and operations. The company also has a presence in financial services through its subsidiary, Atlantic Asset Management Limited, which focuses on asset management.

Zhongzefeng is not the only Hong Kong-listed company venturing into the virtual asset space. Victory Securities, for example, became the first local brokerage in Hong Kong to receive a virtual asset license, enabling it to offer virtual asset investment services to professional investors. MaiCapital obtained additional approval from the SFC in 2022 to manage portfolios composed entirely of virtual assets. Its flagship product, the Blockchain Opportunity Fund, is the first crypto-themed fund managed by an SFC-regulated fund manager with over three years of track record.

Other companies, such as Epic Capital Asia Limited, Fintech Investment Group Limited (a subsidiary of CMCC Global), and Futu Holdings, have also introduced diversified investment products, including virtual assets, to meet growing demand from clients for digital currency investments. These developments highlight the increasing importance of virtual assets in the strategic planning of Hong Kong-listed companies.

As virtual assets continue to gain traction, Hong Kong's regulatory framework ensures that companies operate within a structured and compliant environment. The SFC requires asset managers to obtain a Type 9 license to manage funds that include virtual assets, with restrictions on the proportion of virtual assets in portfolios unless additional approvals are granted. This regulatory approach aims to protect investors and maintain the integrity of the financial market.