The Hong Kong stock market is witnessing a new wave of investor frenzy — not driven by traditional tech or consumer trends, but by the surging momentum of crypto-related equities. Dubbed the "Hong Kong crypto meme stock season," this rally has drawn comparisons to the excitement around Bitcoin and Ethereum ETF approvals in recent years. As stablecoin regulations take shape and major financial institutions pivot toward digital assets, investors are scrambling to position themselves in what could be a transformative chapter for Hong Kong’s financial markets.
But what exactly is fueling this surge? And more importantly, can it last?
The Three Waves of Hong Kong’s Crypto Stock Rally
The current market movement didn’t happen overnight. Instead, it unfolded in three distinct phases — each building on the last, creating a snowball effect that has redefined investor sentiment across Hong Kong’s capital markets.
First Wave: Circle-Linked Stocks Take Off
The spark was lit when Circle, the issuer of USD Coin (USDC), went public in the U.S., sending shockwaves through global markets. In just over ten days, its valuation skyrocketed nearly tenfold, briefly touching $40 billion. This sudden spotlight on stablecoins quickly spilled over into Hong Kong’s equity markets.
On May 30, 2025, the Hong Kong government officially enacted the Stablecoin Ordinance, paving the way for regulated stablecoin issuance. Markets reacted instantly. Crypto-linked stocks surged: LianLian Digital jumped as much as 80%, YeePay rose nearly 50%, and OKLink climbed over 45%. By market close, most had locked in double-digit gains.
Investor attention then turned to firms with direct ties to Circle. China Everbright Holdings (00165.HK), an early backer of Circle, saw its shares rise over 15% in early June. Even more notable was Huaxing Capital (1911.HK), which confirmed that its Huaxing New Economy Fund had invested in Circle back in 2018. At the time, Circle wasn’t yet a stablecoin giant — its valuation was just $3 billion. Today, that foresight has paid off handsomely.
By June 30, Huaxing Capital’s share price reached HK$4.93 — a year-to-date high — underscoring how deeply investor sentiment is now tied to crypto narratives.
Second Wave: Tech Giants Enter the Stablecoin Race
With Circle setting the tone, attention shifted from indirect investments to direct participation. Major tech players began signaling their intent to launch regulated stablecoins under Hong Kong’s new framework.
In mid-June, Bloomberg reported that Ant Group plans to apply for stablecoin licenses in both Hong Kong and Singapore. While no final decisions have been made, the company confirmed it will act swiftly once the regulatory pathway opens on August 1, 2025. The market response was explosive: Yunfeng Financial (00376.HK), often seen as an Ant Group proxy, surged 98% intraday.
Even more ambitious was JD.com. Chairman Richard Liu announced JD’s goal to secure stablecoin licenses in all major currency jurisdictions, aiming to slash cross-border payment costs by 90% and settle transactions in under 10 seconds. JD’s stablecoin will be issued on a public blockchain, ensuring full transparency of supply and reserves. The company targets a Q4 2025 launch.
These announcements supercharged interest in so-called “stablecoin概念股” (concept stocks). On June 16 alone, ZhongAn Online, LianLian Digital, and China Everbright Holdings all posted double-digit gains during morning trading.
Third Wave: Brokers Become Crypto Gateways
The final catalyst came from traditional financial intermediaries — securities firms.
On June 24, Guotai Junan International (1788.HK) became the first mainland-backed broker in Hong Kong approved by the SFC to offer full virtual asset trading services. Clients can now trade Bitcoin, Ethereum, and USDT directly through its platform. The stock responded violently: shares leapt from HK$2.50 to HK$7.00 within two days — a gain of over 180%.
Other brokers followed suit. Reports emerged that Victory Securities, AID Partners, and GF Securities Hong Kong had also upgraded their licenses or launched tokenized financial products. GF Securities introduced “GF Token,” a yield-bearing digital asset pegged to SOFR, available exclusively to institutional investors and tradable on Hashkey Exchange.
Crucially, these services are not exchanges — they act as distribution channels via omnibus accounts at licensed platforms. They also exclude high-risk altcoins and prohibit participation by mainland Chinese residents due to compliance constraints.
This three-phase evolution — from speculative linkage to real-world application — has given the rally stronger legs than typical meme stock frenzies.
Navigating the Hype: Key Barriers to Entry
While excitement builds, access remains limited. For many mainland investors, several structural hurdles stand in the way.
Barrier #1: The HK Stock Connect Requires 500K RMB
Mainland investors typically access Hong Kong stocks via the Stock Connect program. However, eligibility demands:
- An average daily balance of at least 500,000 RMB over the past 20 trading days (excluding margin funds)
- A risk profile assessment of C4 (Aggressive) or higher
- Passing a knowledge test on Hong Kong market rules
- Having an active A-share account with no disciplinary history
That half-million RMB threshold alone excludes millions of retail investors.
Barrier #2: Online Brokers Tighten KYC Rules
Platforms like Futu (Moomoo) and Longbridge have significantly tightened account opening procedures for mainland users. The once-popular “legacy proof” method (using old account data) has been scrapped.
Now, applicants must provide recent proof of overseas residence or employment — such as:
- Utility bills (electricity, water, gas)
- Credit card statements
- Insurance policies
- Rental agreements
- Government-issued tax notices
All documents must be dated within the last three months and clearly show name, address, issuer, and date.
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Banks like HSBC and Standard Chartered have also restricted mainland clients from subscribing to IPOs, citing issuer requirements and regulatory alignment.
Barrier #3: Trading Costs Just Got Cheaper — But Still Add Up
Historically, Hong Kong’s stock transaction fee was capped at a minimum of HK$2 and maximum of HK$100 — punishing for small trades.
Good news arrived on June 30: HKEX eliminated both floors and ceilings. The new fee is 0.0042% per trade, meaning a HK$1,000 transaction now costs just HK$0.042 — a 98% drop from before.
However, fees are still charged on both buy and sell sides (“dual-side collection”), so frequent traders should factor in cumulative costs.
Is This Time Different?
Hong Kong isn’t new to market booms. In late 2024, policy-driven optimism sparked similar rallies in fintech and EV stocks. But this time, there’s a critical difference: regulatory tailwinds.
Finance Secretary Paul Chan emphasized in a recent blog post that stablecoins could revolutionize cross-border payments — aligning perfectly with Hong Kong’s role as a bridge between China and global markets. The government’s Digital Asset Policy Declaration 2.0 explicitly supports stablecoin adoption across commerce and capital markets.
With clear rules taking effect August 1, 2025, and institutional players actively building compliant infrastructure, this rally may have deeper fundamentals than past speculative runs.
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Frequently Asked Questions (FAQ)
Q: What triggered the Hong Kong crypto stock surge?
A: The rally began with Circle’s U.S. listing success, followed by Hong Kong’s official stablecoin legislation and major firms like Ant Group and JD.com announcing entry into the space.
Q: Can mainland Chinese investors buy these crypto-linked stocks?
A: Direct access is restricted. Mainland residents cannot use local brokers for most new crypto-enabled platforms due to compliance rules prohibiting their participation.
Q: Are these stocks actually involved in crypto operations?
A: Most are not direct operators. Many are “concept stocks” — firms linked via investment, partnership, or speculation rather than active crypto business lines.
Q: What role do brokers play in this trend?
A: Firms like Guotai Junan International now offer regulated access to Bitcoin and Ethereum trading, acting as gateways rather than exchanges.
Q: Will this rally last beyond 2025?
A: Sustainability depends on continued regulatory support, actual product launches (e.g., JD’s stablecoin), and broader institutional adoption.
Q: How has HKEX changed trading fees?
A: As of June 30, 2025, HKEX removed minimum (HK$2) and maximum (HK$100) transaction fees, replacing them with a flat 0.0042% rate — drastically lowering costs for small trades.
This isn’t just another speculative wave — it’s a convergence of regulation, innovation, and institutional momentum positioning Hong Kong as Asia’s next crypto finance hub. Whether you're watching from inside or outside the market, one thing is clear: the rules of engagement are changing fast.