The Hong Kong financial landscape is witnessing a pivotal shift as publicly traded companies make strategic moves into the digital asset space. One of the most notable developments is the emergence of New Huo HK, a crypto exchange initiative backed by Xinhua Technology, a listed firm on the Hong Kong Stock Exchange. This development marks a significant step toward institutionalizing cryptocurrency trading in Asia’s financial hub.
Backed by prominent industry figures, including Leon Li, former founder of Huobi, and Jun Du, co-founder of the Huobi Group, New Huo HK has already launched limited trading pairs—BTC/USD, ETH/USD, and USDT/USD—though it currently shows no trading volume and lacks a public registration portal. The platform appears to be in a trial operation phase, possibly as part of an ongoing regulatory licensing process.
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Regulatory Strategy and Market Positioning
New Huo HK’s cautious rollout reflects Hong Kong’s stringent regulatory environment. Under the Securities and Futures Ordinance (SFO), only professional investors are eligible to access virtual asset trading services. This classification includes:
- Institutional investors with at least HK$40 million in total assets
- Corporations or partnerships with investment portfolios exceeding HK$8 million or total assets above HK$40 million
- Individual professional investors holding portfolios worth HK$8 million or more in cash, deposits, or securities
By limiting access to accredited participants, New Huo HK aligns itself with Hong Kong’s broader push to integrate digital assets into traditional finance while maintaining risk control. This approach mirrors the city’s 2023 regulatory framework that allows licensed crypto exchanges to serve retail clients—provided they meet strict capital, custody, and disclosure requirements.
Despite the platform’s current limitations, its very existence signals Xinhua Technology’s long-term ambitions in the blockchain sector. As a publicly listed entity under the oversight of the Hong Kong Securities and Futures Commission (SFC), all official updates must be disclosed through formal stock exchange announcements—ensuring transparency and compliance.
Leadership and Corporate Evolution
At the helm of Xinhua Technology are key figures from the Huobi ecosystem. Leon Li, though serving as a non-executive director and controlling shareholder with approximately 53.37% ownership, remains a central figure behind the company’s strategic direction. Meanwhile, Jun Du was appointed CEO in November 2022, succeeding Wu Shupeng, who stepped down to pursue other ventures.
However, Jun Du has publicly downplayed expectations around New Huo HK. In a social media post, he clarified that while Xinhua Technology plans to roll out several credible products this year, the New Huo HK trading platform is not among them. He emphasized that all official information would be released via formal channels, urging stakeholders to refer to announcements on the Hong Kong Stock Exchange website.
This distancing may reflect regulatory caution or a deliberate strategy to manage market speculation during the licensing phase.
Precedents in Licensed Crypto Services
Xinhua Technology is no newcomer to regulated digital asset operations. As early as 2020, a subsidiary under the Huobi Technology umbrella secured Type 4 (advisory) and Type 9 (asset management) licenses from the SFC. These permits enabled the firm to offer professional investment advice and manage portfolios involving virtual assets.
In December 2022, Xinhua Asset Management announced a landmark partnership with Coinbase, one of the world’s most regulated crypto exchanges. This collaboration made Xinhua one of the first licensed institutions in Hong Kong to provide discretionary account management services for professional investors using Coinbase’s institutional-grade trading infrastructure.
Under this model, Xinhua acts as an investment manager, overseeing client-held crypto assets on Coinbase’s secure platform—blending traditional wealth management frameworks with cutting-edge blockchain technology.
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Strategic Implications for the Crypto Ecosystem
The rise of New Huo HK could have ripple effects across the regional crypto market:
- Competition with existing players: If fully licensed, New Huo HK may challenge established platforms like OSL and HashKey, especially if it leverages its ties to former Huobi talent. Reports suggest several long-time Huobi employees have already transitioned to roles within Xinhua Technology.
- Institutional-grade infrastructure: With prior experience managing assets on Coinbase and navigating SFC compliance, the company is well-positioned to build a robust, audit-ready exchange platform.
- Bridge between traditional finance and Web3: By starting with USD-pegged trading pairs (BTC/USD, ETH/USD), New Huo HK caters to institutional clients familiar with fiat-based valuation models—facilitating smoother entry into digital assets.
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Frequently Asked Questions (FAQ)
Q: Is New Huo HK currently open for public trading?
A: No. The platform is in trial operation mode and only accessible to professional investors. There is no public registration available at this time.
Q: Who owns New Huo HK?
A: New Huo HK is operated by Xinhua Technology, a Hong Kong-listed company. Leon Li holds approximately 53.37% of the company’s shares and serves as a non-executive director.
Q: Does New Huo HK have an SFC license?
A: While the platform is part of Xinhua Technology’s broader licensing efforts, there is no public confirmation yet that New Huo HK itself holds an SFC license for virtual asset trading.
Q: Can retail investors use New Huo HK?
A: Not at present. Access is restricted to professional investors as defined under Hong Kong’s Securities and Futures Ordinance.
Q: What trading pairs does New Huo HK offer?
A: Currently, the platform lists BTC/USD, ETH/USD, and USDT/USD. However, no trading volume is visible, indicating minimal or test-level activity.
Q: How does New Huo HK differ from Huobi?
A: Unlike Huobi, which operates globally with a focus on retail users, New Huo HK targets institutional clients within Hong Kong’s regulated framework—emphasizing compliance over mass-market appeal.
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