The recent surge in stablecoin-related stocks has captured the attention of global financial markets, especially following Hong Kong’s landmark regulatory moves. As investor interest skyrockets, authorities and experts are stepping in to temper expectations, emphasizing that stablecoins are payment tools—not speculative assets.
With Hong Kong’s Legislative Council passing the Stablecoin Ordinance Bill in May 2025, a new era of regulated digital asset infrastructure is unfolding. The legislation establishes a licensing regime for fiat-backed stablecoin issuers, reinforcing Hong Kong’s ambition to become a leading digital asset hub in Asia. However, amid the excitement, both regulators and analysts are urging caution.
Market Frenzy: Stablecoin Stocks Soar
Since June 2025, a wave of rallies has swept across stablecoin-linked equities. On June 25, shares of Jingbei North (002987.SZ), Cuiwei Shares (603123.SH), and Hailian JinHui (002537.SZ) hit daily trading limits, with Hailian JinHui marking its third consecutive涨停 (price limit-up).
Earlier in the month:
- Dongxin Peace (002017.SZ) and Hailian JinHui surged to maximum gains.
- Kingdee Interconnected (002530.SZ) rose 6.46% after touching the upper limit early in the session.
- Sifang Jingchuang (300468.SZ) achieved a 20% price cap—a rare occurrence in China’s Growth Enterprise Market—with a monthly gain exceeding 82%.
- Chutian Dragon (003040.SZ) posted over 67% growth within the same period.
Notable performers also include UBI (300531.SZ), Lakala (300773.SZ), Huafeng Microfiber (300180.SZ), Advanced Digital Tong (300541.SZ), and Digital Certification (300579.SZ).
In Hong Kong markets:
- YeePay (09923.HK) gained more than 40% month-to-date.
- Lianlian Digital (02598.HK) jumped 11.65% on June 23.
- ZhongAn Online (06060.HK) rose over 8% in a single day.
This momentum reflects growing market confidence in blockchain-based financial infrastructure, particularly as companies clarify their roles in the evolving stablecoin ecosystem.
Corporate Responses and Strategic Moves
Amid rising investor inquiries, several listed firms have clarified their involvement in stablecoin technologies:
- CloudWalk Technology (688327.SH) highlighted its AI-powered biometric verification systems used in banking and securities. These can be adapted for stablecoin wallets to prevent unauthorized access through real-time behavioral analysis and dynamic identity checks.
- Jingbei North emphasized its expertise in blockchain, privacy computing, and smart contracts. It has contributed to digital RMB and digital pataca projects and is now exploring applications in regulated stablecoin frameworks.
- Yunyi Technology (300674.SZ) noted that post-regulation, stablecoin use cases could expand significantly. Supported by Macao’s Science and Technology Development Fund, it's researching Web3-based retail payment systems and monitoring shifts in financial operations driven by digital currency adoption.
Meanwhile, institutional interest is surging. In early June, Yunyi Technology hosted investor calls attended by over 70 institutions—including securities firms, insurers, and fund managers—focusing heavily on stablecoin strategies.
Brokerage research is equally active: more than 24 reports from at least 16 securities houses were published in just one week, analyzing regulatory impacts, technological readiness, and investment opportunities.
Regulatory Landscape: A Global Shift Toward Oversight
Stablecoins are increasingly seen as a bridge between traditional finance and the digital asset world. But with innovation comes risk—prompting governments worldwide to act.
Key developments in 2025:
- United Kingdom: The Treasury released the Financial Services and Markets Act (Crypto Assets) Order 2025 draft on April 29, setting a legal foundation for crypto regulation.
- United States: The Senate advanced the GENIUS Act via procedural vote on May 19, paving the way for federal stablecoin oversight.
- Hong Kong: Passed its Stablecoin Ordinance Bill on May 21, creating a licensing framework for fiat-referenced stablecoin issuers.
Tech giants are responding swiftly:
- 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.
These moves signal a strategic shift toward regulated digital finance expansion—particularly through Hong Kong’s open yet compliant environment.
Expert Insight: “Don’t Overhype Stablecoins”
Despite enthusiasm, experts warn against overestimating stablecoins’ near-term role.
“Stablecoins are not investments or speculative instruments,” said Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority (HKMA), in a June 23 commentary titled Prudent and Sustainable Development of Stablecoins. “They are payment tools built on blockchain technology—with no inherent appreciation potential.”
He added: “While we welcome public interest, our duty as regulators is to cool things down and encourage objective, rational discussion.”
Wang Pengbo, Chief Financial Analyst at Botong Consulting, echoed this view:
“Stablecoins may enhance cross-border payments, but they won’t replace existing systems. In high-security, large-value transactions, traditional infrastructure remains unmatched. In China specifically, the domestic payment ecosystem is already efficient, low-cost, and all-encompassing.”
He stressed that stablecoins serve best as complements, not competitors, to current financial rails.
Why China Won’t Embrace Private Stablecoins
Mainland China maintains strict controls over private cryptocurrencies.
As Wang noted:
“There’s no room for private stablecoins in China’s domestic market. Transaction fees are already minimal, coverage is universal, and the legal stance is clear: non-sovereign digital currencies cannot be used for payments.”
Back in 2017, seven Chinese regulators—including the People's Bank of China—issued a joint notice banning initial coin offerings (ICOs) and shutting down cryptocurrency trading platforms.
Pang Helin, member of the MIIT Expert Committee on Information and Communication Economics, explained:
“Cryptocurrencies challenge monetary sovereignty due to untraceable fund flows. Allowing widespread private ‘minting’ could lead to chaos—fake tokens, fraud risks, and systemic trust erosion.”
Instead, Pang foresees a dual-track model:
- Mainland China: Focus on sovereign digital currency (e.g., e-CNY).
- Hong Kong and Macao: Serve as open gateways for global crypto innovation and asset tokenization.
Cross-Border Payments: The Real Opportunity
Where stablecoins shine is in cross-border settlements, offering:
- Lower transaction costs
- Near-instant settlement
- 24/7 availability
For example, BitPay enabled a European electronics manufacturer to save 90% on remittance fees when paying Asian suppliers—funds arrived instantly, improving cash flow and procurement flexibility.
Wang Pengbo believes long-term success hinges on:
- International cooperation in cross-border payment corridors
- Integration with central bank digital currencies like digital RMB
- Tokenization of real-world assets (RWA) to boost liquidity
- Expanding access in underbanked emerging markets
Yu Weiwen acknowledged other innovations too—such as CBDC networks between central banks, tokenized deposits by commercial banks, and cross-border fast payment links—but noted that market adoption will ultimately determine which solutions prevail.
At the 2025 Lujiazui Forum, PBOC Governor Pan Gongsheng stated:
“Blockchain and distributed ledger technologies are driving rapid growth in central bank digital currencies and stablecoins. They enable ‘payment equals settlement,’ shortening cross-border chains dramatically—while posing new challenges for financial oversight.”
He added that smart contracts and decentralized finance will continue shaping the future of global payments.
Frequently Asked Questions (FAQ)
Q: What are stablecoins?
A: Stablecoins are digital currencies pegged to stable assets like the US dollar or gold. They combine blockchain efficiency with price stability, making them ideal for transactions and value transfer.
Q: Are stablecoins legal in China?
A: Private stablecoins are not permitted for payment use in mainland China. However, Hong Kong operates under separate regulations and is developing a licensing framework for compliant issuers.
Q: Can I invest in stablecoin stocks safely?
A: While some stocks have surged recently, experts advise caution. Many companies have limited direct exposure to stablecoins. Always assess fundamentals before investing.
Q: Do stablecoins earn interest?
A: Some platforms offer yield on stablecoin holdings via lending or DeFi protocols—but these carry risks including platform failure or loss of principal.
Q: How do stablecoins differ from central bank digital currencies (CBDCs)?
A: CBDCs are government-issued digital money (like e-CNY), fully backed by central banks. Stablecoins are typically issued by private entities and must maintain reserves to uphold their peg.
Q: Will stablecoins replace traditional banking?
A: No. They’re better viewed as complementary tools—especially useful for cross-border transfers—but unlikely to displace established financial institutions or payment networks.
Core Keywords: stablecoin, blockchain technology, cross-border payments, digital assets, Hong Kong regulation, cryptocurrency market, tokenized assets, Web3 finance.