The stablecoin narrative is reshaping equity markets across Greater China, triggering sharp movements in both Hong Kong and mainland-listed stocks. On July 3, 2025, DMALL Inc. (02586.HK), a retail digitalization solutions provider, saw its shares surge nearly 90% intraday on speculation it is preparing to apply for a Hong Kong-issued stablecoin license. The rally eventually cooled, closing up 23.64% at HK$11.14, with turnover reaching HK$1.877 billion.
In contrast, A-share stablecoin-linked stocks showed mixed performance. While some names like Kingee Culture (002721.SZ) and Jingbei North (002987.SZ) gained ground, Yuyin Shares (002487.SZ) plunged nearly 10%, hitting a daily limit down—highlighting growing divergence among so-called “stablecoin概念股” (concept stocks).
Market Reaction to Hong Kong’s Stablecoin Regulatory Push
The surge in investor interest follows key regulatory developments in Hong Kong. In May 2025, the Legislative Council passed the Stablecoin Ordinance Bill, establishing the region’s first comprehensive licensing framework for stablecoin issuers. Set to take effect on August 1, 2025, the law empowers the Hong Kong Monetary Authority (HKMA) to regulate issuers of fiat-collateralized stablecoins, ensuring reserve transparency and operational resilience.
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Complementing this, the Financial Services and Treasury Bureau released the Hong Kong Digital Assets Development Policy Statement 2.0 on June 26, outlining a strategic roadmap to expand digital asset use cases, enhance regulatory clarity, and foster talent development. Analysts at CITIC Construction Investment interpret this as a pivotal shift—from pilot programs to full-scale implementation—potentially accelerating growth in stablecoins and real-world asset (RWA) tokenization.
DMALL’s Strategic Move into Web3 and Digital Assets
DMALL, founded in 2015 and listed in December 2024, provides digital transformation tools for retailers across China and Asia. The company has now signaled a bold pivot into blockchain infrastructure.
According to Tom Yip, DMALL’s Vice President and CFO, the firm has already acquired Bitcoin through HashKey Exchange and is actively recruiting Web3 specialists to support its long-term strategy. “Stablecoins can significantly improve cross-border payment efficiency for our retail clients, reduce transaction costs, and elevate consumer experience,” Yip stated, aligning the move with broader global trends of crypto integration in commerce.
While DMALL confirmed its intent to pursue a stablecoin license in a post-market announcement on July 3, it did not disclose technical specifications or launch timelines. Still, the mere prospect was enough to ignite speculative trading.
Broader Market Momentum in Hong Kong
DMALL wasn’t alone in benefiting from the stablecoin momentum. Victory Securities (08540.HK) and Guotai Junan International (01788.HK) both rose over 10% that day. The latter had received approval from the SFC on June 24 to upgrade its securities license to include virtual asset trading services—enabling clients to trade Bitcoin, Ethereum, and stablecoins like USDT directly on its platform.
This regulatory green light triggered a dramatic rally: Guotai Junan International surged 198.39% on June 25 and briefly touched an all-time high of HK$7.02 on June 26. As of July 3, its year-to-date gain exceeded 250%.
A-Share Market: Real Exposure vs. Market Hype
Mainland Chinese markets told a more nuanced story. Among A-share firms, Kingee Culture closed limit-up, while Jingbei North gained nearly 8%. Hengbao (002104.SZ) and Chutianlong (003040.SZ) also posted gains above 4%.
Jingbei North recently revealed it had hosted investor calls with 96 institutions, discussing potential roles in a future stablecoin ecosystem. The company emphasized its existing expertise in digital RMB infrastructure, noting that stablecoin ecosystems—comprising issuance, operations, and applications—mirror those of China’s central bank digital currency (CBDC). Its experience in system development and deployment could be repurposed for stablecoin-related projects.
However, not all rallies are grounded in fundamentals.
Yuyin Shares, despite being repeatedly cited as a “digital currency concept stock,” has clearly distanced itself from the narrative. On June 6, it clarified via Shenzhen Stock Exchange’s interactive platform that it operates primarily in intelligent financial equipment and industrial park management—not stablecoins or digital currencies.
Yet retail speculation drove its stock up sharply in late May, including five consecutive涨停 (limit-up days), before reversing course. On July 3, it fell 9.83%, closing at RMB 7.43 with a staggering 50.3% turnover rate.
Lumberjack board data showed retail investors—particularly those linked to the “Lhasa group” trading desks—dominated buying activity, while institutional sellers offloaded over RMB 260 million collectively.
Key Market Drivers and Investment Outlook
Stablecoins are evolving beyond crypto trading into broader payment ecosystems. According to Open Source Securities research, increasing adoption in cross-border settlements, remittances, and e-commerce is expanding market size and transaction volume. With regulatory clarity emerging in jurisdictions like Hong Kong and the U.S., institutional participation is expected to rise.
Core keywords shaping this trend include stablecoin, digital assets, Hong Kong regulation, RWA tokenization, Web3, blockchain payments, virtual asset licensing, and crypto adoption.
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Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to an underlying asset—such as the U.S. dollar, gold, or other cryptocurrencies—through collateral or algorithmic mechanisms.
Q: Why did DMALL’s stock surge so dramatically?
A: The surge was driven by market anticipation of DMALL applying for a Hong Kong stablecoin license—a move that could position it at the forefront of regulated digital finance innovation in Asia.
Q: Is Hong Kong’s stablecoin regulation already active?
A: The Stablecoin Ordinance will come into force on August 1, 2025. The HKMA has begun public consultations on implementation guidelines and will start accepting license applications thereafter.
Q: Are A-share companies actually building stablecoins?
A: Most are not directly issuing stablecoins. Instead, firms like Jingbei North are positioning themselves as technology enablers—leveraging their experience in digital RMB systems to support future stablecoin infrastructure if demand arises.
Q: What risks do investors face in stablecoin-related stocks?
A: High volatility and speculative trading are major risks. Many stocks rise on sentiment rather than confirmed business activities. Regulatory uncertainty outside Hong Kong also limits near-term scalability.
Q: How does real-world asset (RWA) tokenization relate to stablecoins?
A: RWAs involve digitizing physical assets like real estate or bonds on blockchain. Stablecoins often serve as the settlement layer in RWA transactions, making them integral to the broader tokenized economy.
Final Thoughts
The split performance between DMALL’s surge and Yuyin Shares’ collapse underscores a maturing market: investors are beginning to differentiate between genuine strategic moves and speculative noise.
With Hong Kong solidifying its role as a regulated hub for digital assets, companies actively engaging in Web3 infrastructure—like DMALL and Guotai Junan International—are likely to attract sustained attention. Meanwhile, mainland firms with tangible fintech expertise may gradually integrate into this ecosystem through partnerships or technological alignment with digital payment trends.