As the countdown to the official implementation of the "Stablecoin Ordinance" in Hong Kong, China on August 1 begins, the volatility of related stocks in the capital market has increased significantly.
On July 29, the Hong Kong stock market's stablecoin concept sector fell significantly. LianLian Digital, ZhongAn Online, OSL Group, China Everbright Holdings and other stocks fell by more than 5% during the session. However, the declines narrowed after the closing, and OSL Group turned positive.
In terms of A-shares, Hang Seng Electronics hit the daily limit, with the trading volume on that day approaching 6 billion yuan, doubling from the previous trading day. Stocks that had seen large gains in the previous period, such as Sifang Jingchuang, Beijing North, and Hengbao Shares, also saw rapid increases in the late trading session.
In fact, since Hong Kong officially passed the "Stablecoin Bill" at the end of May, many stocks linked to stablecoins have seen significant increases, and some have even doubled in price.
Industry insiders believe that while the stablecoin concept is currently hot, it is still in the early stages of development. Most companies have yet to disclose stablecoin-related business performance, and the market is mainly speculating based on future expectations. Previously, Hong Kong Monetary Authority Chief Executive Eddie Yue also issued a statement, advising investors to remain calm and think independently when digesting so-called "positive" market news.
Hang Seng Electronics hit the daily limit, and many stocks rose in the late trading session
On July 29th, A-share stablecoin stocks saw renewed activity, with Hang Seng Electronics hitting its daily limit, closing at 37.82 yuan, with a turnover of 5.978 billion yuan and an 8.65% turnover rate. Since June, Hang Seng Electronics has seen a cumulative increase of 44.27%.
Market rumors indicate that Hengyun Technology, a wholly-owned subsidiary of Hang Seng Electronics, and Ant Digital have reached a strategic partnership focusing on the operation and system development of virtual assets and stablecoins. Ant and Hengyun will subsequently hold a stablecoin conference, likely in September.
In response to this, a relevant person from Hang Seng Electronics responded to the reporter from the Times Weekly that they were not aware of the market rumors and that the company's official announcement was the basis. If there is any clear progress, they will synchronize with the market in a timely manner.
A reporter from the Times Weekly noted that on July 8th, an investor asked Hang Seng Electronics about the company's stablecoin development on the Shanghai Stock Exchange's e-interactive platform. Hang Seng Electronics stated that its subsidiary, Hengyun Technology, was one of the first providers of virtual asset trading systems in Hong Kong. Over the past two years, it has helped numerous financial institutions launch online platforms, achieving secure integration with virtual asset exchanges and ensuring smooth transactions and real-time data. Currently, the related business has not had a significant impact on the company's current operating income.
Hengyun Technology is an overseas subsidiary of Hang Seng Electronics, headquartered in Hong Kong. According to a previous article published on Hang Seng Electronics' official WeChat account, Hengyun Technology has been working closely with Chinese brokerages since December 2024, providing them with professional trading system support. This effort effectively facilitated the development of virtual asset trading systems in just six months. Hengyun Technology has established a dedicated technical team to rapidly respond to customer needs and ensure the virtual asset trading system is ready when Chinese brokerage licenses are approved.
Looking at the market's performance throughout the day, many stablecoin-related stocks saw active afternoon trading. On the morning of July 29th, Sifang Jingchuang's stock price briefly fell by over 4%, but it rebounded sharply in the afternoon, closing at 44.41 yuan, up 3.35%. Additionally, other stablecoin-related stocks, including Beijing North, Tianyang Technology, Changliang Technology, Yuxin Technology, and Hengbao Shares, also saw afternoon gains.
It is worth mentioning that at present, many shareholders and executives of stablecoin concept stocks have announced plans to reduce their holdings.
On July 8, Hengbao Co., Ltd. issued an announcement on the completion of the share reduction plan of its directors and vice presidents. On July 7, the company's vice president Gao Qiang reduced his holdings in the company by 197,500 shares through centralized bidding, with an average price of 20.08 yuan.
On July 11, Beijing North announced that its controlling shareholder, Hedao (Tianjin) Enterprise Management Partnership (Limited Partnership), a joint actor, plans to reduce its holdings by up to 26 million shares due to its own funding needs. Just two trading days prior, Beijing North's stock price had hit a record high of 27.70 yuan.
Hong Kong stocks have seen "ten-fold stocks", and investors need to be rational
Since the Legislative Council of the Hong Kong Special Administrative Region of China passed the Stablecoin Bill at the end of May, the market response has been quite enthusiastic. It is common for individual stocks to see a sharp rise in share prices as long as they can be linked to stablecoins.
Wind data shows that from June 1 to July 29, in the A-share market, the share prices of Dongxin Heping and Hengbao Co., Ltd. have doubled, with cumulative increases of 161.85% and 142.18% respectively. The increases of Sifang Jingchuang, Chutianlong, Beijing North, and Tianyang Technology have reached 79.80%, 76.59%, 53.48%, and 42% respectively, which are relatively considerable increases.
Compared with the A-share market, the growth of Hong Kong-related stocks is even more "crazy".
On July 15, China 33 Media announced its intention to apply for a Hong Kong stablecoin license, to be funded from the net proceeds of a placement of new shares under its general mandate and the company's existing cash reserves. China 33 Media stated that it has extensive experience serving a large retail client base with a strong demand for cross-border and local payments. The company believes that stablecoins can significantly improve payment efficiency and reduce costs. To better serve its retail clients, the company has begun preparations for applying for a stablecoin license.
As soon as the news was released, on July 16, China 33 Media's share price soared by 72.73%. As of July 29, China 33 Media's share price had increased by 1838.71% this year, ranking fourth on the Hong Kong stock market's annual growth list.
Additionally, Jiami Technology announced on the evening of July 28th that it had raised approximately HK$399.8 million through a general authorization through the subscription and placement of new shares. Approximately 70% of the proceeds will be used to develop its stablecoin business and projects (including ChainStream's technology development and platform expansion, promoting the launch and application of stablecoins in Web3.0-developed regions through tokenization of real-world assets and enhanced verification, and promoting the stablecoin business and strategic investments, including the subscription of South Pacific Group upon completion).
After a brief trading halt on July 28, Jiami Technology resumed trading on July 29, with its share price surging 15.65%. As of July 29, its year-to-date share price had risen 1880%, slightly higher than China 33 Media, ranking third among Hong Kong stocks for year-to-date gains.
Regarding the recent surge in stablecoin concept stocks, the official has issued a document reminding investors to view it rationally.
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, recently wrote that with the recent hype surrounding the concept of stablecoins, the market has become overly excited. As long as some listed companies declare their intention to develop stablecoin businesses, their share prices will rise, their stock trading volume will increase significantly, and their company visibility will also be greatly enhanced. Regardless of whether their core business is related to stablecoins or digital assets,
Yu Weiwen said that the Hong Kong Monetary Authority had previously made it clear that it would only approve a few stablecoin licenses in the initial stage, and advised investors to remain calm and think independently when digesting the so-called "good" news in the market.