The Hong Kong stock market is witnessing a new wave of momentum, driven by a surge in crypto-linked equities—commonly dubbed the "Hong Kong meme stock season." Fueled by growing institutional interest in stablecoins and virtual asset services, stocks tied to blockchain innovation, digital finance, and cryptocurrency infrastructure are experiencing sharp rallies. From券商 firms upgrading their licenses to tech giants eyeing stablecoin issuance, the market narrative has shifted dramatically in recent months.
This surge didn’t emerge overnight. It evolved through three distinct phases: first, excitement around Circle, the so-called “stablecoin pioneer”; second, broader enthusiasm for stablecoin概念股 (concept stocks) following regulatory developments; and third, a full-blown rally in crypto-enabled securities firms after major brokers received approvals to offer virtual asset trading.
The Circle Effect: Sparking a Market-Wide Rally
The catalyst for this trend was Circle’s successful direct listing on the U.S. stock exchange. Within just over ten days, its valuation skyrocketed nearly tenfold, briefly surpassing $40 billion. This event reignited investor appetite for blockchain-related assets—not just in crypto markets but also across traditional equities.
In Hong Kong, early backers of Circle saw immediate gains. China Everbright Holdings (00165.HK), an early investor, jumped over 15% ahead of Circle’s上市. Similarly, Huaxing Capital (1911.HK) revealed that its Huaxing New Economy Fund had invested in Circle back in 2018. At the time, Circle wasn't primarily known for USDC or stablecoins—its valuation was a modest $3 billion. Today, that foresight has paid off handsomely.
“We believed blockchain would create significant commercial and social value,” said Lei Ming, former Huaxing investor. “Financial services are ultimately about licensing—and Circle had the most comprehensive regulatory coverage at the time.”
Following the announcement, Huaxing Capital’s share price climbed from HK$3.55 on June 4 to HK$4.93 by June 30—a year-to-date high—reflecting renewed confidence in its Web3 and crypto asset strategy.
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Stablecoin Hype Fuels Next Wave: Ant Group & JD.com Enter the Fray
After the initial Circle-driven momentum, attention turned to stablecoin licensing developments in Hong Kong.
On June 12, Bloomberg reported that Ant Group plans to apply for stablecoin licenses in Hong Kong and Singapore. Once the Stablecoin Ordinance takes effect on August 1, 2025, Ant Financial aims to submit its application promptly. This confirmation came from Bian Zhuoqun, Vice President of Ant Digital Technology and head of its blockchain division.
Markets reacted swiftly: Yunfeng Financial (00376.HK), often viewed as an Ant-affiliated firm, surged up to 98%, closing with a 53% gain. Other related stocks like Shinetown Holdings and Yau Tin Securities also posted strong gains.
Even more ambitious is JD.com. Chairman Richard Liu announced internally that JD aims to obtain stablecoin licenses in all major currency regions. The goal? Reduce cross-border corporate payment costs by 90% and settle transactions in under 10 seconds—compared to the current average of 2–4 days.
JD’s stablecoin will be issued on a public blockchain, ensuring full transparency of supply data. According to Liu Peng, CEO of JD Blockchain Tech, JD’s Hong Kong and Macau e-commerce platforms will soon support stablecoin payments. The company targets a Q4 2025 launch.
This forward-looking strategy has investors re-evaluating JD-linked equities and digital payment enablers such as LianLian Digital and ZhongAn Online.
Brokerage Transformation: From Traditional Trading to Virtual Asset Services
The third phase of the rally centers on securities firms upgrading their capabilities to offer regulated crypto trading.
On June 25, Guotai Junan International (HK: 1788) became the first mainland-backed broker in Hong Kong approved by the SFC to upgrade its license for full virtual asset trading services. Investors can now trade Bitcoin, Ethereum, and USDT directly through its platform.
The market response was explosive: shares jumped over 63% in 24 hours, briefly touching HK$7—a staggering move for a traditionally conservative financial stock.
While Guotai Junan led the charge, it’s not alone. Reports indicate several other brokers—including Victory Securities and AID Partners Securities—have completed similar upgrades under Type 1 licensing. These services are distribution-based, meaning clients access crypto via omnibus accounts on licensed exchanges like HashKey—not through proprietary trading desks.
Importantly:
- These platforms only support major cryptocurrencies (BTC, ETH, USDT), excluding high-risk altcoins.
- They adhere to strict KYC and investor suitability standards.
- Mainland Chinese residents are currently prohibited from participating.
Meanwhile, GF Securities’ Hong Kong arm launched “GF Token,” a tokenized money market instrument offering daily interest and redemption. Denominated in USD (SOFR-linked), HKD, and CNH, these tokens are issued on-chain and tradable on HashKey—but only available to institutional and professional investors.
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Soaring Demand: IPO Frenzy and Rising Barriers to Entry
Hong Kong’s capital markets are heating up. According to EY’s H1 2025 IPO report:
- ~40 companies are expected to list, raising HK$108.7 billion—up 711% year-on-year.
- 70% of new listings achieved positive first-day returns.
- Average oversubscription reached 642 times, with some exceeding 5,000x (e.g., Buko Group and Mixue Ice Cream).
New listings like Haitian Flavouring, Sanhua Intelligent Controls, and Cao Cao Mobility have intensified retail demand.
However, access isn’t easy. To participate via Stock Connect, investors must meet stringent requirements:
- Average daily assets of RMB 500,000+ over the past 20 trading days (excluding margin funds).
- Risk profile assessment at C4 (aggressive) or higher.
- Pass a knowledge test (typically 80%+ score) on港股 rules and risks.
- Hold an A-share account with no adverse records; some brokers require ≥6 months of trading history.
These conditions effectively exclude many retail investors.
Compliance & Documentation: Tighter Verification Processes
Brokerage firms like Futu, Longbridge, and Webull have tightened verification procedures:
- Acceptable proof includes utility bills, bank statements, insurance policies, tax documents, or overseas property leases.
- Documents must be issued within the last three months and clearly show name, address, date, and issuing authority.
- Many have eliminated “self-declaration” or legacy account opening methods.
Additionally, some banks have preemptively restricted access to hot IPOs due to compliance clauses in offering circulars—foreshadowing broader tightening across financial institutions.
Trading Cost Reform: Lower Fees Boost Accessibility
Starting June 30, HKEX overhauled its stock transaction fee structure:
- Eliminated the previous floor of HK$2 and ceiling of HK$100 per trade.
- New rate: 0.0042% per transaction, making small trades far more cost-effective.
For example:
- A HK$1,000 trade previously cost HK$2 (0.2% fee).
- Now costs just HK$0.042—a 98% reduction.
Though fees remain bilateral (charged on both buy and sell), this change benefits both retail traders and institutions by enabling finer cost control and improved execution strategies.
Market Sentiment & Future Outlook
User activity reflects surging interest:
- Tiger Brokers saw weekly account openings rise by 73.4%.
- Futu reported a 95% increase in trading volume week-on-week and a 60% rise in active investors.
This momentum is supported by Hong Kong’s proactive fintech agenda. Financial Secretary Paul Chan emphasized the role of fintech in solving real-world pain points—especially slow and costly cross-border payments.
The government’s Digital Assets Policy Declaration 2.0 identifies stablecoins as a key lever for transforming payment systems and capital markets. With regulations set to take effect August 1, 2025, the stage is set for broader adoption across commerce and finance.
Frequently Asked Questions (FAQ)
Q: What triggered the recent Hong Kong crypto stock rally?
A: The surge was sparked by Circle’s U.S. listing success, followed by regulatory progress on stablecoin licensing and broker upgrades allowing virtual asset trading.
Q: Can mainland Chinese investors trade crypto-linked Hong Kong stocks?
A: While they can invest via Stock Connect if they meet eligibility criteria (e.g., RMB 500k assets), most crypto trading services explicitly prohibit mainland residents due to compliance restrictions.
Q: Are these “crypto stocks” safe investments?
A: They carry higher volatility and speculative risk. While backed by real companies, their valuations are influenced by market sentiment around emerging tech—not just fundamentals.
Q: What is a “tokenized security”?
A: It’s a digital representation of traditional financial assets (like bonds or cash) issued on a blockchain. GF Token is an example—it represents short-term interest-bearing instruments.
Q: How does the new HKEX fee structure benefit investors?
A: By removing minimum fees and lowering rates to 0.0042%, small traders pay significantly less per transaction, improving accessibility and reducing friction.
Q: Will more brokers offer crypto trading in Hong Kong?
A: Yes—several firms are pursuing SFC licensing upgrades. As demand grows and regulation clarifies, wider participation is expected throughout 2025.
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