The capital market's enthusiasm for stablecoins continues unabated. On July 3, rumors emerged that Hong Kong-listed Dmall (02586.HK) was preparing to apply for a stablecoin license in Hong Kong, instantly igniting market sentiment.
Market Reactions Highlight Diverging Trends
Dmall's Strategic Move Into Stablecoins
- Price Volatility: Dmall's stock soared nearly 90% intraday before settling at a 23% gain by market close, reaching a HK$10 billion market cap.
- Official Confirmation: Post-market, Dmall announced its stablecoin license preparations and revealed Bitcoin purchases via HashKey Exchange.
Broader Market Impact
- Hong Kong Stocks: Victory Securities (08540.HK) and Guotai Junan International (01788.HK) surged over 10%.
A-Shares Rally:
- Jinyi Culture (002721.SZ) hit the daily limit-up.
- Jingbeifang (002987.SZ) rose 8%, with Hengbao (002104.SZ) and Chutianlong (003040.SZ) gaining 4%.
- Notable Exception: Yuyuan Shares (002177.SZ) plummeted 9.83%, hitting a跌停 (down limit), despite a 65.15% YTD rise.
Hong Kong’s Regulatory Landscape
The Stablecoin Ordinance Draft passed in May establishes Hong Kong’s first comprehensive regulatory framework, effective August 1. Key developments:
- Policy 2.0: The June 26 Hong Kong Digital Asset Development Policy Declaration 2.0 expands focus to tokenized real-world assets (RWA).
- Analyst Outlook: CITIC Securities notes this marks a shift from "experimental" to "implementation" phase, accelerating stablecoin and RWA growth.
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A-Shares: Genuine Growth or Speculative Hype?
- Jingbeifang’s Strategy: Leveraging digital RMB experience, the firm explores stablecoin opportunities with major banks and partners.
- Yuyuan’s Clarification: Repeatedly denied stablecoin involvement, emphasizing smart financial equipment operations.
Institutional Activity
- Yuyuan’s July 3 Trading: "Lhasa Group" retail buyers accounted for 82% of top purchases (¥122M), while institutional sellers dominated exits (¥263M).
Expert Insights
Shen Meng, Chanson Capital:
"Hong Kong’s stablecoin regulations are nascent, and current market hype relies on expectations. Investors should time entries cautiously."
Open Source Securities: Stablecoins’ expansion into payments and clearer regulations (e.g., U.S., Hong Kong) present long-term opportunities.
FAQ Section
Q1: What is a stablecoin?
A: A blockchain-based cryptocurrency pegged to assets like fiat currencies or commodities to maintain price stability.
Q2: Why did Dmall’s stock surge?
A: Speculation around its Hong Kong stablecoin license application drove investor optimism.
Q3: Which A-share stocks are genuinely involved in stablecoins?
A: Jingbeifang has confirmed strategic discussions, while Yuyuan denies any stablecoin linkage.
Q4: When does Hong Kong’s stablecoin regulation take effect?
A: The ordinance becomes enforceable on August 1, 2024, with license applications opening thereafter.
Q5: How are institutions trading stablecoin stocks?
A: Mixed activity—retail investors dominate buys (e.g., Yuyuan), while institutions profit-take (e.g., July 3 sell-offs).
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