The recent legislative developments around stablecoins in Hong Kong have ignited a wave of excitement across financial markets, triggering a surge in so-called "stablecoin概念股" (related stocks). Since June 2025, shares tied to blockchain, digital payments, and cryptocurrency infrastructure have seen dramatic rallies—some even hitting consecutive daily trading limits. Yet amid the frenzy, regulators and experts are sounding a note of caution: stablecoins are payment tools, not speculative assets.
Market Frenzy: Stablecoin-Linked Stocks Soar
On June 25, 2025, multiple Chinese-listed companies associated with stablecoin technology surged again. Jingbei North (002987.SZ), Cuiwei Shares (603123.SH), and Hailian Jin Hui (002537.SZ) all closed at their daily price limits, with Hailian Jin Hui marking its third consecutive涨停 (limit-up day).
Earlier in the week, Dongxin Peace (002017.SZ) and Hailian Jin Hui had already surged, while Golden Finance & Internet (002530.SZ) briefly hit a limit-up before settling at a 6.46% gain. Sifang Precision Creation (300468.SZ) rocketed 20% in a single session—a so-called "20CM" limit-up common on China’s ChiNext exchange—and had gained 82% over the month. Others like Chutian Dragon (003040.SZ) rose over 67%, while UROVO (300531.SZ), Lakala (300773.SZ), Huafeng Microfiber (300180.SZ), Advanced Digital (300541.SZ), Digital Certification (300579.SZ), and Jingbei North also posted strong gains.
In Hong Kong, YeePay (09923.HK) climbed more than 40% month-to-date, while Lianlian Digital (02598.HK) jumped 11.65% on June 23 and ZhongAn Online (06060.HK) rose over 8% the same day.
Corporate Responses and Strategic Moves
Amid investor enthusiasm, numerous firms have clarified their positions on stablecoins via public disclosures:
- CloudWalk Technology (688327.SH) highlighted its AI-powered biometric authentication systems used in banking and securities. These technologies can be adapted for stablecoin wallets to prevent unauthorized access through real-time behavioral analysis and dynamic identity verification.
- Jingbei North emphasized its expertise in blockchain, privacy computing, and smart contracts. With prior experience in building systems for digital RMB and digital MOP (Macanese pataca), it is now exploring applications in the stablecoin space.
- Yunyi Technology (300674.SZ) noted that post-regulation, stablecoins could unlock new use cases abroad. It’s currently developing a Web3-based retail payment system with support from the Macau Science and Technology Fund and is actively studying operational models for digital currency in financial services.
Institutional interest is surging too. In early June 2025, Yunyi Technology hosted investor events attended by over 70 institutions—including securities firms, insurers, and fund managers—where stablecoin strategies were central topics. Meanwhile, at least 16 brokerage houses issued more than 24 research reports on stablecoins within a single week.
Regulatory Landscape: From Hong Kong to Global Frameworks
While markets heat up, regulators are moving swiftly to establish guardrails.
On May 21, 2025, Hong Kong’s Legislative Council passed the Stablecoin Ordinance Bill, creating a licensing regime for fiat-backed stablecoin issuers. This marks a pivotal step in formalizing the city’s virtual asset regulatory framework.
Hong Kong Monetary Authority (HKMA) Chief Executive Yu Weiwen cautioned against hype in a June 23 commentary titled “Ensuring Safe and Sustainable Development of Stablecoins.” He stated:
“While we welcome public interest as regulators, our duty requires us to cool things down—to encourage a more objective and rational view of stablecoins.”
He stressed that stablecoins are not investment vehicles but rather blockchain-based payment instruments with no inherent appreciation potential.
Similar momentum is building globally:
- The UK Treasury published the Financial Services and Markets (Cryptoassets) Instrument 2025 on April 29, 2025.
- In the U.S., the Senate advanced the GENIUS Act on May 19 through a procedural vote (66–32), signaling growing bipartisan support for stablecoin regulation.
Industry Giants Enter the Arena
Tech titans are responding to this evolving landscape:
- Ant Group announced plans to apply for stablecoin licenses in Hong Kong and Singapore.
- JD.com revealed intentions to issue a public blockchain-based stablecoin pegged 1:1 to the Hong Kong dollar.
Economist Pan Helin, member of the MIIT Expert Committee on Information and Communications Economics, suggests two primary motivations behind these moves: fundraising and real-world asset tokenization.
Expert Warnings: Don’t Chase the Hype
Despite growing adoption, experts urge restraint.
Wang Pengbo, Chief Financial Analyst at Botong Consulting, warns against overestimating stablecoins’ role:
“Stablecoins are not meant to replace existing payment systems. They’re complementary tools—especially useful in cross-border payments—but they won’t displace domestic infrastructures like Alipay or UnionPay anytime soon.”
He points out that China’s existing payment ecosystem is already highly efficient, low-cost, and deeply embedded in daily life. Moreover, legal constraints remain firm: the People’s Bank of China has long prohibited non-sovereign cryptocurrencies from being used as payment methods.
A landmark moment came on September 4, 2017, when seven Chinese regulatory bodies—including the PBOC—issued a joint notice halting all token offerings and crypto trading platforms. That stance hasn’t changed on the mainland.
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Pan Helin adds:
“Mainland China focuses on sovereign digital currency development—like the e-CNY—while Hong Kong and Macao serve as open windows for crypto innovation. The future lies in this dual-track model.”
He cautions that unrestricted private issuance of stablecoins could lead to market chaos, misinformation, and loss of public trust due to unregulated capital flows.
The Real Potential: Cross-Border Payments and RWA
Where do stablecoins actually shine?
The consensus among industry leaders is clear: cross-border payments.
Compared to traditional SWIFT transfers—which can take days and charge high fees—stablecoins offer:
- Near-instant settlement
- Lower transaction costs
- 24/7 availability
For example, BitPay reported helping a European electronics manufacturer save 90% in fees when paying Asian suppliers using stablecoins, with funds arriving in real time—enabling better inventory planning and cash flow management.
Wang Pengbo believes long-term success hinges on three pillars:
- International cooperation in cross-border payments
- Integration with central bank digital currencies (CBDCs), such as digital RMB
- Tokenization of real-world assets (RWA) to enhance liquidity in traditional finance
Yu Weiwen acknowledges other emerging alternatives too—from central bank digital currency networks to tokenized deposits by commercial banks—but emphasizes that market forces will ultimately shape which technologies prevail.
At the 2025 Lujiazui Forum, PBOC Governor Pan Gongsheng noted that blockchain and distributed ledger technologies are enabling innovations like “payment-versus-settlement” mechanisms, drastically shortening cross-border transaction chains. However, he also warned that these advances bring new regulatory challenges—especially around decentralized finance (DeFi) and programmable smart contracts.
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Frequently Asked Questions
Q: Are stablecoins legal in mainland China?
A: No. While research and development continue under strict oversight, private stablecoins cannot be used for payments or trading by the general public. The focus remains on state-backed digital currency—the e-CNY.
Q: Can I invest in stablecoin-related stocks safely?
A: These stocks may be volatile due to speculation. While some companies have genuine blockchain capabilities, others may only have peripheral exposure. Always conduct due diligence before investing.
Q: What’s the difference between stablecoins and central bank digital currencies (CBDCs)?
A: Stablecoins are typically issued by private entities and backed by reserves (e.g., USD). CBDCs are sovereign digital currencies issued by central banks—like China’s digital RMB—and represent direct liabilities of the government.
Q: Will Hong Kong become a global stablecoin hub?
A: With clear regulations and support from financial authorities, Hong Kong is positioning itself as a key gateway for compliant crypto innovation in Asia.
Q: Do stablecoins always maintain their peg?
A: Not always. While most major stablecoins (like USDT or USDC) generally hold their value relative to the USD, extreme market stress or lack of transparency can cause de-pegging events.
Q: How do smart contracts relate to stablecoins?
A: Smart contracts automate transactions involving stablecoins—such as releasing funds upon delivery confirmation or enabling programmable payments in DeFi applications.
Core Keywords: stablecoin, blockchain technology, cross-border payments, digital asset regulation, CBDC, real-world asset tokenization, Hong Kong financial regulation