Yunfeng Financial is stepping up its Web3 initiatives.
On September 17, its wholly owned subsidiary issued a real-world asset (RWA) tokenization product backed by fund-of-funds (FOF) units. This was the company’s first independently managed RWA project, supported by its in-house blockchain team.
Previously, Yunfeng Financial’s investment in the Pharos public blockchain, securities license upgrades, and accumulation of digital assets were viewed mainly as strategic reserves. By launching its own RWA project, the company is signaling a deeper integration of Web3 with its traditional financial services.
Yunfeng Financial resurfaced on July 15 by reviving its official WeChat account after a three-year hiatus. In its first statement, the company outlined plans to expand into Web3, real-world assets (RWAs), digital currencies, zero-carbon ESG (environmental, social, and governance) assets, and artificial intelligence, while building on its insurance and fintech businesses. It also pledged to explore applications that link these technologies with its insurance operations.
Since then, the company has moved quickly on its Web3 strategy, and its share price has surged in tandem. According to Wind data, Yunfeng Financial’s stock more than doubled between July 15, when it announced the plan, and September 19.
Is Yunfeng the next Ant Group?
Yunfeng Financial has rolled out a string of announcements in September:
- On September 1, it signed a strategic cooperation agreement with Ant Digital Technologies and invested in the Pharos public blockchain.
- On September 2, it disclosed the purchase of 10,000 units of Ethereum in the open market as reserve assets, at a cost of USD 44 million.
- On September 5, it appointed Fosun Group co-founder Liang Xinjun as an independent non-executive director. Liang has investment experience in Web3, artificial intelligence, and the metaverse.
- On September 9, subsidiary Yunfeng Securities secured approval to expand its Type 1 license to cover virtual asset trading.
- On September 16, the company placed 191 million shares, raising HKD 1.17 billion (USD 149.6 million). Part of the proceeds will support expansion into virtual asset trading and investment management.
- On September 17, it launched its first independently managed RWA product.
Wind data shows that Yunfeng Financial’s largest shareholder is Jade Passion Limited with a 48.41% stake. David Yu ultimately controls 47.25% of the company through multiple holding entities. Huang Xin, executive director and acting CEO, and Jack Ma hold 60% and 40% of Yunfeng Capital, respectively.
While Ma does not appear in Yunfeng Financial’s official board disclosures, the company remains closely linked to him. Investors view him as a key influence. With Yunfeng Financial pushing into cryptocurrencies and RWAs, speculation is rising that it could become Ma’s next digital finance platform, similar to Ant Group’s role within Alibaba.
Alipay, Ant’s predecessor, was born to resolve trust and payment issues in Taobao transactions. By handling payments, escrow, and settlement for millions of merchants and buyers on Alibaba’s platforms, Alipay built a massive user base and transaction dataset. That foundation enabled its expansion into credit and fintech services, fueling Ant’s rise into a financial technology leader.
Yunfeng Financial is now building digital asset reserves while working with Ant-linked firms. Its trajectory is beginning to resemble Ant’s.
The company’s stock has doubled in September alone, reflecting both its announcements and broader momentum in Hong Kong’s digital asset sector.
Other Hong Kong-listed firms with digital asset exposure have seen similar rallies. On June 24, Guotai Junan International won approval from Hong Kong’s Securities and Futures Commission (SFC) to upgrade its license for virtual asset trading. Its stock jumped 198% the next day. On July 15, China 33 Media said it was preparing to apply for a stablecoin license. Its shares rose 71.88% on July 16, bringing its year-to-date gain to 1,800%.
Bright Smart Securities, Yunfeng Financial, and other peers have also gained more than 100% this year.
This momentum has been driven by Hong Kong’s regulatory shift. On May 21, the Legislative Council passed a stablecoin bill, establishing a legal framework for the sector and fueling investor interest.
Yunfeng Financial’s stock spikes have also coincided with Ant’s moves in virtual assets. When Ant acquired Bright Smart Securities on April 25, Yunfeng Financial jumped more than 50% the next day. When reports emerged in June that Ant had applied for a stablecoin license, the stock rose again. Its partnership with Ant Digital Technologies in September triggered another rally.
Back to fundamentals
The issuance of Yunfeng Financial’s first RWA product highlights its independent capability to tokenize assets. For its insurance business, the company’s main profit driver, the implications could be significant.
In its mid-2025 earnings report, Yunfeng Financial posted insurance revenue of HKD 1.53 billion (USD 196.8 million), up 11% year-on-year. Net profit attributable to shareholders reached HKD 486 million (USD 62.5 million), a 142% increase.
Annualized new business premiums rose to HKD 2.22 billion (USD 285.6 million), doubling from a year earlier. New business value increased 81% to HKD 610 million (USD 78.5 million). MassMutual’s net operating profit from new businesses reached HKD 686 million (USD 88.3 million), up 21%.
These figures underscore Yunfeng Financial’s large base of insurance assets. Tokenizing policies could turn static instruments into tradable digital assets, boosting liquidity and tapping decentralized finance markets for lower-cost funding. That would create new financing channels for insurers.
Smart contracts could automate payouts and transfers, cutting costs and errors. Blockchain’s immutability could strengthen transparency. Together, these technologies may generate service and management fee income, lifting profitability over time.
Beyond insurance, Yunfeng Financial’s Web3 strategy appears rooted in infrastructure. In 2017, Ma said,“I don’t have much interest in Bitcoin. What I want to know is what Bitcoin can bring to society.” On blockchain, he added, “It shouldn’t be about getting rich overnight. Blockchain must solve social problems.”
That perspective echoes Alibaba’s mission of “making it easy to do business anywhere.” Yunfeng Financial’s recent blockchain investments and license upgrades suggest a similar emphasis on infrastructure.
As blockchain and digital currencies move from speculation to real-world use cases, Yunfeng Financial is positioning itself as a bridge between traditional assets and Web3. By bringing insurance, funds, and other real-world assets on-chain, it could help create a marketplace for tokenized assets.
Still, risks remain. Crypto markets are volatile, and Yunfeng Financial has indicated plans to buy more digital assets beyond Ethereum. That could expose its balance sheet to price fluctuations, potentially affecting investor returns.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Hanyu for 36Kr.