The stablecoin investment theme continues to stir up market sentiment across Greater China, with notable divergence emerging between Hong Kong and mainland A-share listed companies. On July 3, DMall Digital Intelligence (02586.HK) surged nearly 90% intraday after reports surfaced that it is preparing to apply for a Hong Kong stablecoin license—a move that ignited speculation and trading frenzy. In contrast, A-share firm G&D Technology (002177.SZ) hit the daily trading limit down despite being grouped into the same thematic category, highlighting growing investor scrutiny over genuine exposure versus speculative labeling.
This growing split underscores a maturing market response: while policy tailwinds strengthen, investors are increasingly distinguishing between companies with real strategic positioning and those merely riding the hype wave.
DMall Rides Regulatory Momentum with Strategic Crypto Moves
DMall Digital Intelligence, a leading retail digitalization solutions provider in Asia, confirmed in a post-market announcement on July 3 that it is preparing to apply for a stablecoin issuance license under Hong Kong’s new regulatory framework. The company also disclosed it has acquired Bitcoin through HashKey Exchange, signaling a deeper commitment to Web3 infrastructure development.
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Founded in 2015 and listed on the Hong Kong Stock Exchange in December 2024, DMall serves regional retailers by digitizing operations through cloud-based platforms and data analytics tools. Now, the company aims to integrate blockchain-based payment solutions into its ecosystem.
Tommy Tang, Vice President and CFO of DMall, stated that stablecoins could significantly enhance cross-border payment efficiency for its retail clients, reduce transaction costs, and improve customer experience—aligning with broader global trends of cryptocurrency adoption in commerce.
The market reacted swiftly. DMall’s shares spiked to an intraday high of nearly 90% gain before settling at a 23.64% close, ending at HK$11.14 with HK$1.877 billion in turnover and a 16.48% turnover ratio. This volatility reflects both enthusiasm and uncertainty around the timeline for actual business implementation.
Hong Kong’s Regulatory Framework Paves the Way
The catalyst behind this surge lies in Hong Kong’s progressive regulatory developments. 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 ordinance allows the Hong Kong Monetary Authority (HKMA) to begin accepting license applications.
Concurrently, the Financial Services and Treasury Bureau released Hong Kong Digital Asset Development Policy Declaration 2.0 on June 26, outlining plans to optimize regulation, expand product offerings, promote real-world applications, and foster talent collaboration.
According to CITIC Construction Investment Research, this marks a pivotal shift—from experimental pilot programs to full-scale implementation. The policy now extends beyond cryptocurrencies to include real-world asset tokenization (RWA), stablecoins, and decentralized finance (DeFi), creating fertile ground for innovation.
Core Keywords:
- Stablecoin
- Hong Kong stablecoin license
- DMall Digital Intelligence
- Digital asset policy
- Cryptocurrency regulation
- Blockchain payments
- Real-world asset tokenization (RWA)
- Web3 strategy
Broader Market Impact: Winners and Pretenders
Other financial firms with clearer crypto integration strategies also saw gains. Guotai Junan International (01788.HK) jumped over 10% on July 3, following earlier news that it received approval from the SFC on June 24 to upgrade its securities license to include virtual asset trading services—enabling clients to trade Bitcoin, Ethereum, and stablecoins like USDT directly.
The stock had already rallied 250.97% year-to-date as of July 3, peaking at HK$7.02 on June 26—its highest level since listing.
Meanwhile in mainland China, A-share stablecoin-related stocks showed mixed performance:
- Kingee Culture (002721.SZ): Closed limit-up.
- Jingbei North (002987.SZ): Rose nearly 8%, closing at RMB 21.18.
- Hengbao Co. (002104.SZ) and Chutianlong (003040.SZ): Both gained over 4%.
Jingbei North emphasized its active role in the digital RMB ecosystem during investor calls on June 22–23, noting that its technical experience in digital currency systems can be reused in potential stablecoin projects. The firm is engaging with major state-owned banks and other partners to explore business opportunities in this space.
Reality Check: Not All “Stablecoin Plays” Are Equal
Despite thematic enthusiasm, not all companies benefit equally—and some face backlash when fundamentals don’t match perception.
G&D Technology (002177.SZ), once a speculative favorite with a five-day consecutive limit-up streak since late May, plunged 9.83% on July 3, hitting the daily limit down with RMB 2.516 billion in turnover and a staggering 50.3% turnover rate.
Crucially, G&D has repeatedly clarified it has no involvement in stablecoins or digital currency operations. On June 6, it stated via the Shenzhen Stock Exchange’s investor platform that its core businesses are industrial park management and intelligent financial equipment services.
Market data reveals retail-heavy trading patterns: the top four buyers were all retail-dominated “Lhasa groups,” purchasing RMB 122 million collectively. Meanwhile, major sell-offs came from institutional desks and brokerages such as Guosheng Securities and Haitong Securities.
This divergence highlights a key takeaway: investor sentiment is shifting from blind thematic chasing toward fundamental validation.
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Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain price stability by being pegged to an underlying asset—such as fiat currency (e.g., USD), commodities (e.g., gold), or other crypto assets—through reserves or algorithmic mechanisms.
Q: Why is Hong Kong introducing a stablecoin license?
A: To establish legal clarity, protect investors, prevent money laundering, and position Hong Kong as a global hub for responsible digital finance innovation amid growing global adoption of blockchain-based payments.
Q: Can any company apply for a Hong Kong stablecoin license?
A: While open in principle, applicants must meet strict requirements around capital adequacy, reserve management, governance, and compliance systems set by the HKMA.
Q: Is there a difference between digital RMB and stablecoins?
A: Yes. Digital RMB is a central bank digital currency (CBDC) issued by China’s PBOC—fully regulated and sovereign-backed. Stablecoins are typically privately issued but may be regulated; they operate globally but require transparency and reserve audits.
Q: Are all companies linked to "digital currency" investing safe bets?
A: No. Many firms are only peripherally related or lack technical capabilities. Investors should verify actual business involvement, partnerships, and disclosures before making decisions.
Q: When will the Hong Kong stablecoin regulations take effect?
A: The Stablecoin Ordinance takes effect on August 1, 2025, with the HKMA beginning license applications shortly after.
Conclusion: Differentiation Is Key in the Stablecoin Rally
As Hong Kong solidifies its position as a regulated gateway for digital assets in Asia, market participants are beginning to separate signal from noise. Genuine players like DMall and Guotai Junan International are leveraging strategic investments and regulatory clarity to build long-term value. Meanwhile, speculative names without clear roadmaps face correction.
For investors, the message is clear: focus on companies with verifiable progress in blockchain integration, regulatory preparedness, and tangible use cases—especially those bridging traditional finance with emerging Web3 ecosystems.
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