The Hong Kong stock market is experiencing a wave of excitement as "crypto concept stocks" surge amid growing interest in blockchain and stablecoin-related businesses. Following Circle's explosive debut on the U.S. stock market, Hong Kong-listed securities firms like Guotai Junan Securities, Tianfeng Securities, and Victory Securities have seen collective rallies, reminiscent of the hype surrounding BTC and ETH ETF approvals in previous years.
The Rise of Crypto-Fueled Market Rally
This market frenzy unfolded in three distinct phases:
Phase 1: Circle-Related Stocks
- Key Catalyst: Circle's Nasdaq listing and 10x stock surge
- Impact: Early investors like China Everbright Holdings (00165.HK) rose 15%
- Regulatory Boost: Hong Kong's Stablecoin Ordinance enactment (May 30) triggered sector-wide gains
Phase 2: Stablecoin Concept Stocks
- Major Players: Ant Group, JD.com announced stablecoin plans
- Market Response: Ant-related stocks like Yunfeng Financial (00376.HK) surged 98% intraday
- Corporate Strategy: JD.com aims to reduce global payment costs by 90% through stablecoins
Phase 3: Brokerage Crypto Stocks
- Licensing Milestone: Guotai Junan International (1788.HK) became first Chinese brokerage approved for virtual asset services
- Trading Volume: Stock price increased 63% within 24 hours post-announcement
- Market Expansion: Multiple Hong Kong brokers now offer compliant crypto trading channels
Investment Thresholds: Challenges for Mainland Investors
Requirement 1: HK Stock Connect Access
- 50M RMB minimum (20-day average account balance)
- Risk assessment level C4+ required
- Knowledge test scoring ≥80/100
Requirement 2: Tightened Brokerage Standards
Major platforms like Futu and Longbridge now require:
- Overseas residency/work proof
- Recent utility bills/bank statements (≤3 months old)
- Banks increasingly restricting IPO participation
Requirement 3: Settlement Fee Changes
- New structure reduces small-trade costs from 0.2% to 0.0042%
- Eliminates previous 2-100 HKD fee range
- Still applies to both buy/sell transactions
Market Outlook and Considerations
While trading volumes surge with:
- 97% of mainboard IPOs oversubscribed (avg. 642x)
- Record-breaking subscriptions like Blue Zoo (5000x+)
- Multiple June listings fueling demand
Key Factors for Sustainability:
- Additional regulatory support
- Expansion of compliant crypto services
- Mainland investment channel improvements
FAQ Section
Q: Can mainland investors directly trade Hong Kong crypto stocks?
A: Only through HK Stock Connect (50M RMB min.) or overseas accounts with residency proof.
Q: What's driving stablecoin stock popularity?
A: Circle's success and Hong Kong's proactive regulation (Stablecoin Ordinance effective Aug 1).
Q: Are these crypto services available to retail investors?
A: Currently limited to professionals/institutions due to licensing requirements.
Q: How does this compare to last year's Hong Kong market surge?
A: Higher crypto sector involvement now, with more regulatory clarity on digital assets.