Surge of 100% in cryptocurrency concept stocks defies the trend! Major news suddenly breaks in Hong Kong stocks!

Hong Kong Stocks’ Cryptocurrency Concept Stocks Surge Against the Trend

On February 20th, Hong Kong stocks marked the first trading day of the Lunar Year of the Horse. Major indices experienced fluctuations and adjustments, while cryptocurrency concept stocks surged against the trend. Star Tai Chain Group once soared by 100%, Lianlian Digital increased by over 5%, and OSL Group rose by more than 2%. On the previous trading day, related concept stocks all experienced significant gains. According to news, Hong Kong Legislative Council member Wu Jiezhuang revealed that Hong Kong is expected to issue the first batch of stablecoin issuer licenses in March this year.

Some brokerage institutions believe that the industry is currently in a critical period of policy acceleration and compliance system building. The speeding up of regulatory pilot programs and legislative processes may push stablecoins from the gray area toward institutional development. In the future, stablecoins are expected to expand continuously in both application breadth and depth.

Sudden Surge

On February 20th, after the Hong Kong stock market opened, cryptocurrency concept stocks surged across the board. Star Tai Chain Group once soared by 100%. As of the time of this report by Securities Times, the stock was still up over 79%.

On the previous trading day (February 16th), Hong Kong cryptocurrency concept stocks collectively strengthened. By the close, Star Tai Chain Group surged over 77%, Guofu Quantum rose over 21%, and Mi Strategy increased over 10%.

Regarding news, Hong Kong Legislative Council member Wu Jiezhuang stated that Hong Kong is expected to issue the first batch of stablecoin issuer licenses in March this year. He suggested that after licensing, qualified citizens could receive “stablecoin airdrops or consumption vouchers” for local SMEs’ consumption (such as dining, entertainment, etc.) to promote adoption and stimulate the economy. The related administrative costs could be borne by the licensed companies.

Hong Kong SAR Chief Executive John Lee previously stated in his opening speech at the Consensus Hong Kong Conference that the Hong Kong Monetary Authority (HKMA) is actively processing license applications, and the first batch of stablecoin issuer licenses is planned to be issued in March.

The HKMA Chief Executive, Eddie Yue, previously revealed that they have received 36 stablecoin issuer license applications and are currently evaluating them. The review and research work is nearing completion, and the HKMA aims to issue the first batch of stablecoin licenses in March.

Yue emphasized that only a small number of licenses will be issued initially. The HKMA has asked some applicants to provide additional information, such as details of stablecoin use cases and risk management, including investment reserve assets. Once all materials are collected, the HKMA will decide whether to issue licenses as soon as possible.

Yue also highlighted the principles of cross-border activity regulation. He stated that under Hong Kong’s established regulatory framework, any licensed operator involved in cross-border business must comply with the regulations of the jurisdiction where they operate, whether Mainland China, Singapore, ASEAN, or other markets. “It depends on whether each applicant’s use case involves cross-border needs.”

Regarding stablecoins issued outside Hong Kong, Yue clarified that if they are to be used by retail investors in Hong Kong, they must obtain a license in Hong Kong, and the issuing entity must establish an office in Hong Kong and keep reserve assets there.

On the corporate side, Star Tai Chain Group recently announced that it has entered into a strategic cooperation framework agreement with China International Digital Financial Group to collaborate on a real-world asset (RWA) tokenization project for gold. The goal is to leverage Hong Kong’s regulatory framework to strengthen digital finance positioning and create new revenue streams. According to publicly available information, the project aims to diversify income through technology services and ecosystem operations, enhancing the company’s international footprint in digital finance.

Impact and Outlook

As regulatory policies are implemented worldwide, the stablecoin industry is expected to develop in a compliant manner, with continuous expansion in application scope and depth.

According to a previous report by Huaxi Securities, stablecoins, characterized by asset anchoring, low volatility, and high settlement efficiency, are gradually becoming important tools for on-chain payments and cross-border settlements. Currently, the industry is in a critical period of policy acceleration and compliance system construction. The speeding up of regulatory pilot programs and legislative processes is pushing stablecoins from the gray area toward institutionalization. With advantages in balancing compliance and scalability, a diverse stablecoin ecosystem is expected to form in the future.

CITIC Securities believes that, from a financial logic perspective, fiat-backed stablecoins may become the most accepted and secure mainstream stablecoin type. Underlying logic suggests that fiat stablecoins can continue core functions such as value measurement, transfer, storage, and cross-period value preservation, potentially becoming the most important financial medium in the Web3 world. Stablecoins have a significant impact on fiat currency and the issuance rights of fiat currency, with the extent depending on their support for economic activities and the strength of the pegged fiat currency.

According to a Citibank research report, the market capitalization of stablecoins could reach $3.7 trillion by 2030 under optimistic scenarios.

Although Hong Kong is a pioneer in stablecoin development, the HKMA maintains a cautious stance, emphasizing risk control.

Yue has repeatedly stated that investors should remain rational and be cautious of market and public opinion hype. He publicly mentioned that strict regulatory requirements may limit the short-term rapid expansion of stablecoin businesses, which is expected. Since regulated stablecoin activities are still in their early stages, a cautious approach—starting strict, stabilizing, and then gradually relaxing based on practical experience—is more conducive to sustainable development than overly lax regulation that could lead to chaos.