Stablecoin Surge Fuels Financial Sector Rally: What’s Behind the 200% Jump?

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The global financial markets witnessed a dramatic surge in stablecoin-related equities, with some stocks climbing nearly 200% in a single day. This unprecedented rally, particularly evident in Hong Kong-listed Chinese brokerages, has sparked widespread interest among investors and analysts alike. What triggered this explosive movement? And what does it mean for the future of finance?

At the heart of this momentum lies a pivotal regulatory development: the integration of virtual asset trading into traditional financial platforms. On June 24, Guotai Junan International — a subsidiary of Guotai Haitong Group — officially received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its securities trading license. The new license permits the firm to offer virtual asset trading services, including cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether (USDT), and to provide investment advice on these digital assets.

👉 Discover how traditional finance is embracing crypto with next-gen trading platforms.

This regulatory green light marks a transformative shift in the role of securities firms. No longer just intermediaries for stock trades, they are evolving into full-service digital asset gateways. Analysts believe this transition could fundamentally redefine their valuation models — turning brokers into key players in asset tokenization and cross-border settlement infrastructure.

The Strategic Role of Stablecoins in Modern Finance

Stablecoins — digital currencies pegged to stable assets like the U.S. dollar — are emerging as foundational tools in the blockchain economy. By minimizing price volatility, they enable fast, low-cost international payments and serve as reliable on-ramps for institutional capital entering the crypto ecosystem.

According to Guosheng Securities, stablecoins function as the “fiat money of the blockchain,” playing a critical infrastructure role. One of their most promising applications is stock tokenization, where traditional equity shares are represented as blockchain-based tokens. This innovation could accelerate the real-world asset (RWA) tokenization trend, offering scalable solutions for liquidity, transparency, and global access.

As more financial institutions gain regulatory approval to handle digital assets, stablecoin adoption is expected to grow exponentially — creating ripple effects across capital markets.

Market Reaction: A Broad Rally Across Financial Stocks

On June 25, mainland Chinese markets continued their upward trajectory. The Shanghai Composite Index rose 1.03%, hitting a year-to-date high; the Shenzhen Component gained 1.72%; and the ChiNext Index surged 3.11%. Total market turnover reached 1.64 trillion yuan, up by 191.5 billion yuan from the previous session.

The financial sector led the charge. Over ten stocks in the big finance segment hit their daily trading limits, including Huajin Shares, Tianfeng Securities, Guosheng JinKong, Xiangcai Shares, and Nanhua Futures. East Money Information jumped 10.04%, while Guotai Haitong and Cinda Securities posted strong gains.

In Hong Kong, the CSI China-funded Brokerage Index soared more than 55%. Guotai Junan International surged nearly 200%, while Shenyin Wanguo Hong Kong climbed over 42%. Other major winners included Hongye Futures, Zhongzhou Securities, Shenyin Wanguo, and China Merchants Securities.

👉 See how leading financial institutions are integrating blockchain into their core services.

19 Undervalued Growth Stocks to Watch

Amid this market momentum, analysts have identified 19 undervalued, high-growth potential stocks that may benefit from sector rotation and broader financial innovation trends.

Based on data from Securities Times’ DataBox as of June 25, these companies meet strict criteria:

Topping the list is Yuyuan Tourist Mart, which attracted positive ratings from 14 institutions. Analysts project its 2025 net profit to grow by an impressive 964.81%, the highest among peers. The company has repurchased approximately 22.86 million A-shares for about 130 million yuan this year, signaling confidence in its long-term value.

Shenwan Hongyuan Securities noted that Yuyuan is sharpening its focus on core businesses under its “Oriental Lifestyle Aesthetics” strategy, leveraging multi-brand synergy and industrial clusters to expand cultural exports globally.

Among the group, Xiamen C&D has the lowest trailing P/E ratio and is backed by 10 institutional buy ratings. Its projected 2025 net profit growth stands at 115.33%. Changjiang Securities believes the company has passed its operational trough and represents a compelling opportunity for strategic positioning.

Sectors with Strong Institutional Interest: Real Estate & Building Materials

Of the 19 identified stocks, two sectors stand out for concentrated representation: real estate and building materials.

Since early June, institutional analysts have issued 19 “positive” ratings for real estate firms and 12 for building materials companies — signaling renewed confidence in these traditionally cyclical industries.

HuaFu Securities argues that falling interest rates, government housing stockpiling initiatives, and monetized urban renewal projects are improving both homebuyers’ willingness and ability to purchase. These tailwinds could stabilize the real estate market and revive demand across downstream industries — from construction to home appliances.

Moreover, valuations in the building materials sector are currently below levels seen at the end of 2022, suggesting limited downside risk and significant upside potential if fundamentals recover.

Notable names include:

HuaChuang Securities highlights QiBin Group’s dual engine of float glass and photovoltaic glass operations now running smoothly, with emerging glass applications poised to replicate past success.

Four Stocks with Over 30% Upside Potential

DataBox analysis reveals four stocks with particularly strong upside potential based on consensus target prices:

Chengtou Holding, a Shanghai-based state-owned urban investment enterprise, is praised by兴业证券 (Industrial Securities) for its unique resource advantages. With high-quality projects driving sales growth and ample backlog for future settlement, the firm reported improved Q1 earnings and earned an “Overweight” rating.

FAQ: Understanding the Stablecoin Market Surge

Q: Why did stablecoin-related stocks surge so sharply?
A: The rally was primarily driven by regulatory approval for Guotai Junan International to offer crypto and stablecoin trading services — a landmark move signaling deeper integration between traditional finance and digital assets.

Q: What are stablecoins used for in financial markets?
A: Stablecoins act as low-volatility digital cash on blockchains. They facilitate faster settlements, reduce transaction costs, and support innovations like tokenized stocks and cross-border remittances.

Q: Are these stock gains sustainable?
A: While short-term speculation played a role, long-term sustainability depends on continued regulatory clarity, institutional adoption, and real-world use cases for blockchain-based financial products.

Q: How might stock tokenization impact investors?
A: Tokenized stocks could offer 24/7 trading, fractional ownership, instant settlement, and access to global markets — significantly enhancing liquidity and inclusivity.

Q: What risks should investors consider?
A: Regulatory uncertainty outside Hong Kong, market volatility, cybersecurity concerns, and reliance on custodial infrastructure remain key risks in this evolving space.

👉 Explore how blockchain is reshaping investment opportunities worldwide.

Final Thoughts: A New Era for Financial Innovation

The recent surge in stablecoin-linked equities is not just a speculative wave — it reflects a structural shift in finance. As regulators embrace digital assets and institutions roll out integrated crypto services, we’re witnessing the birth of a hybrid financial system where traditional markets meet decentralized technologies.

For investors, this creates both opportunities and challenges. Identifying fundamentally sound companies with clear growth catalysts — especially those undervalued but positioned to benefit from macro trends — will be crucial in navigating this new landscape.

Keywords: stablecoin, stock tokenization, virtual asset trading, financial sector rally, undervalued growth stocks, RWA, crypto regulation, Guotai Junan International