Surge in Hong Kong Stocks Linked to Stablecoin Developments
A notable upswing was observed among Hong Kong stocks associated with stablecoin developments, highlighted by Huajian Medical’s remarkable gain of over 30%. Other companies also experienced gains:
- Lianyirong Technology increased by more than 8%
- Shengli Securities rose by 7.1%
- OSL Group saw a 1.43% rise
- Yaochi Securities climbed by 5.60%
- Even Alibaba made slight gains.
This surge in the stock market comes on the heels of significant regulatory announcements regarding stablecoins in both the United States and Hong Kong.
Regulatory Developments
Recently, President Trump signed the Guidance and Establishment of a National Innovation Act for Stablecoins (the GENIUS Act) into law at the White House, which represents a crucial step in the US regulatory framework for stablecoins. Furthermore, in Hong Kong, the Stablecoin Ordinance has officially been enacted and is set to take effect on August 1, following its publication in the government Gazette on May 30.
Stablecoin Ecosystem Analysis
Analyzing the ecosystem, stablecoins can be categorized into three functional areas: initial market issuance, secondary market trading, and real-world applications. Specifically, Huajian Medical is in the process of applying for a US stablecoin license and is enhancing its Web3 exchange ecosystem.
In a related development, Yunfeng Financial disclosed on the Hong Kong Stock Exchange its intention to strategically engage with Web3, real-world assets, digital currencies, ESG zero-carbon assets, and the field of artificial intelligence.
