The excitement around stablecoin-related stocks continues to ripple through financial markets, but recent price movements suggest a growing divergence in investor sentiment. On July 3, DMALL (02586.HK), a Hong Kong-listed retail tech firm, surged nearly 90% intraday on news of its planned application for a Hong Kong stablecoin license—only to close up 23.64%. In contrast, A-share listed Gainsborough Technology (002177.SZ) plunged into a trading halt, despite no actual involvement in digital currency operations.
This stark contrast highlights a critical shift: while policy momentum builds and real strategic moves accelerate, speculative momentum is starting to crack under scrutiny.
DMALL’s Strategic Move Sparks Market Frenzy
DMALL, formally known as Dmall Inc., is a leading provider of digital retail solutions across China and Asia. Founded in 2015 and listed on the Hong Kong Stock Exchange in December 2024, the company has long focused on digitizing traditional retail operations. Now, it’s making headlines for its bold pivot into blockchain-based finance.
According to a post-market announcement on July 3, DMALL confirmed it is preparing to apply for a stablecoin license under Hong Kong’s new regulatory framework. The company also revealed it had purchased Bitcoin via HashKey Exchange—a regulated crypto trading platform—signaling serious intent.
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Tommy Tang, DMALL’s Vice President and CFO, stated that the company sees long-term value in the cryptocurrency ecosystem. He emphasized that stablecoins could significantly enhance cross-border payment efficiency for its retail clients, reduce transaction costs, and improve customer experience—all aligned with the rising global adoption of digital assets in commerce.
The market reacted swiftly. Shares of DMALL jumped from around HK$5.90 to a peak of HK$11.18 during trading, before settling at HK$11.14 by close. With a turnover of HK$1.877 billion and a 16.48% turnover ratio, the surge reflected strong retail and institutional interest.
Hong Kong’s Regulatory Momentum Fuels Investor Confidence
Stablecoins are blockchain-based digital currencies designed to maintain price stability by being pegged to fiat currencies, commodities, or other assets. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins aim to combine the benefits of decentralization with minimal price fluctuation—making them ideal for payments, remittances, and financial inclusion.
Hong Kong has emerged as a key player in shaping the future of this asset class. In May 2025, the Legislative Council passed the Stablecoin Ordinance Bill, establishing the region's first comprehensive regulatory framework for stablecoin issuers. Set to take effect on August 1, 2025, the law will allow the Hong Kong Monetary Authority (HKMA) to begin accepting license applications.
Additionally, on June 26, 2025, the Financial Services and Treasury Bureau released the Hong Kong Digital Assets Development Policy Statement 2.0. This updated roadmap outlines strategic priorities including regulatory optimization, product expansion, real-world use cases, and talent development—signaling a full-scale push toward becoming a global digital asset hub.
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According to CITIC Construction Investment Research, the release of the policy marks a transition from experimental pilots to full implementation. The scope now extends beyond crypto trading to include real-world asset tokenization (RWA), opening doors for broader financial innovation.
Real Moves vs. Market Hype: A Tale of Two Markets
While DMALL's actions reflect a genuine strategic pivot, not all companies riding the stablecoin wave have concrete plans.
In the A-share market, several firms saw sharp gains on July 3:
- Kingee Culture (002721.SZ) closed flat at limit-up.
- Jingbei North (002987.SZ) rose nearly 8%, reaching RMB 21.18.
- Hengbao Co. (002104.SZ) and Chutianlong (003040.SZ) gained over 4%.
Jingbei North recently hosted investor calls with 96 institutions, discussing potential roles in stablecoin ecosystems. The company noted its prior experience in China’s digital RMB infrastructure gives it transferable expertise across issuance, operations, and application layers.
However, speculation appears rampant in some corners. Gainsborough Technology, which hit a five-day consecutive limit-up streak earlier in Q2, reversed course dramatically on July 3—plunging 9.83% and touching intraday suspension. Despite its stock surge earlier in the year (+65.15% YTD), the company has repeatedly clarified it has no exposure to stablecoins or digital currencies.
On June 6, Gainsborough stated clearly on the Shenzhen Stock Exchange’s interactive platform that its core business revolves around intelligent financial equipment and industrial park operations—not blockchain or crypto.
Liquidity data further reveals speculative behavior: on July 3, top five buyers poured in RMB 149 million, dominated by retail-heavy "Lhasa groups." Meanwhile, major sell-offs came from institutional desks and branches of Guotai Junan and Haitong Securities.
Key Market Themes and Core Keywords
This episode underscores several core trends shaping investor decisions:
- Stablecoin adoption is accelerating due to clearer regulation.
- Real-world asset tokenization (RWA) is expanding investment horizons.
- Retail speculation remains high amid limited transparent information.
- Regulatory clarity in Hong Kong is driving institutional participation.
- Digital currency infrastructure players with proven track records gain credibility.
Core keywords naturally embedded throughout:
stablecoin, Hong Kong stablecoin license, digital RMB, real-world asset tokenization (RWA), blockchain payments, crypto regulation, digital asset policy, retail fintech
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 like the US dollar, gold, or another fiat currency. It combines blockchain efficiency with low volatility.
Q: Why did DMALL’s stock rise so sharply?
A: The surge followed confirmation that DMALL is applying for a Hong Kong stablecoin license and has already acquired Bitcoin. These actions signal serious entry into digital assets, attracting speculative and strategic investors alike.
Q: Is Hong Kong’s stablecoin regulation active yet?
A: The Stablecoin Ordinance will officially come into effect on August 1, 2025. Until then, companies can prepare applications while the HKMA conducts market consultations on implementation guidelines.
Q: Does Gainsborough Technology actually work with stablecoins?
A: No. The company has publicly clarified multiple times that it does not engage in stablecoin or central bank digital currency (CBDC) businesses. Its recent price movements appear driven purely by market speculation.
Q: How might stablecoins impact cross-border payments?
A: Stablecoins can drastically reduce settlement times and fees compared to traditional banking channels. For firms like DMALL with international retail clients, this means faster reconciliation and improved cash flow.
Q: What role does real-world asset tokenization (RWA) play?
A: RWA involves converting physical assets like real estate or bonds into blockchain-based tokens. When paired with stablecoins, it enables fractional ownership, increased liquidity, and automated settlements—opening new financial markets.
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Conclusion
The divergent paths of DMALL and Gainsborough Technology illustrate a maturing market: one where fundamentals increasingly separate winners from hype-driven volatility. As Hong Kong rolls out its stablecoin framework and digital asset policies gain traction, investors must look beyond headlines and assess actual business integration.
True innovation lies not in riding waves of speculation—but in building infrastructure that supports scalable, compliant digital finance. With clearer rules on the horizon and growing corporate engagement, the era of meaningful blockchain adoption may finally be arriving.