Stablecoin Stocks Diverge: DMALL Soars Nearly 90% in Hong Kong, While A-Share Firm GYEN Tumbles to Limit Down

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The momentum behind stablecoin-related equities continues to ripple through capital markets, but signs of divergence are emerging. On July 3, DMALL Inc. (02586.HK), a Hong Kong-listed tech firm, surged nearly 90% intraday following reports it is preparing to apply for a stablecoin license in Hong Kong—only to close the session up 23.64% at HK$11.14. Meanwhile, GYEN Co., an A-share listed company, plunged to a limit-down close of -9.83%, despite earlier gains in the sector.

This stark contrast highlights a growing trend: while policy tailwinds fuel investor enthusiasm, the market is beginning to differentiate between companies with genuine strategic positioning and those merely riding the hype wave.

👉 Discover how regulatory shifts are reshaping digital asset investment opportunities.

The Catalyst: Hong Kong’s Evolving Stablecoin Regulatory Framework

Stablecoins—digital assets pegged to fiat currencies or other reserves to maintain price stability—are gaining traction as key infrastructure in the global digital economy. Hong Kong has taken decisive steps to formalize their role.

In May 2025, the Legislative Council passed the Stablecoin Ordinance Bill, establishing Asia's first comprehensive regulatory framework for stablecoin issuers. Set to take effect on August 1, 2025, the law empowers the Hong Kong Monetary Authority (HKMA) to license and supervise stablecoin operators, ensuring reserve transparency, operational resilience, and anti-money laundering compliance.

This was followed by the release of the Hong Kong Digital Asset Development Policy Statement 2.0 on June 26, which outlines a broader vision for digital asset innovation—including expanded product offerings, real-world asset (RWA) tokenization, and talent development.

According to CITIC Construction Investment Research, these developments mark a pivotal shift—from experimental pilots to full-scale implementation—positioning Hong Kong as a potential hub for regulated digital finance in Asia.

DMALL’s Strategic Move into Web3 and Digital Payments

DMALL Inc., founded in 2015, is a leading provider of digital retail solutions across China and Asia. It went public on the Hong Kong Stock Exchange in December 2024. The company provides end-to-end digital transformation tools for retailers, including cloud-based POS systems, supply chain optimization, and customer engagement platforms.

On July 3, news broke that DMALL is preparing to apply for a Hong Kong-licensed stablecoin issuer status. Tom Yip, the company’s Vice President and CFO, confirmed that DMALL has already acquired Bitcoin via HashKey Exchange and is actively recruiting Web3 talent to support its long-term blockchain strategy.

Yip emphasized that stablecoins could significantly enhance cross-border payment efficiency for its retail clients, reduce transaction costs, and improve user experience—aligning with the rising global adoption of crypto in commerce.

Market reaction was explosive. Shares of DMALL spiked from around HK$5.90 to nearly HK$11 midday—an 87% surge—before settling at HK$11.14 by market close. Trading volume hit HK$1.877 billion, with a turnover rate of 16.48%, signaling strong institutional and retail interest.

👉 Explore how blockchain integration is transforming traditional financial services.

Why Investors Are Watching DMALL Closely

Unlike speculative plays, DMALL brings tangible synergies between its existing business and stablecoin applications:

A-Share Stablecoin Hype Meets Reality Check

While Hong Kong-listed names like DMALL and Guotai Junan International (up over 250% year-to-date) show sustained momentum, the A-share market presents a more fragmented picture.

On July 3, several mainland stocks tied to digital currency themes rallied:

These moves reflect growing investor appetite for firms involved in digital payment ecosystems—especially those with ties to China’s central bank digital currency (CBDC), the e-CNY.

Kingdee North, for instance, has confirmed its deep involvement in the digital RMB ecosystem, participating in system development and application rollout. During investor calls in late June, it noted that its technical expertise in secure transaction processing and financial middleware can be directly applied to future stablecoin infrastructure.

However, not all so-called “stablecoin概念股” (concept stocks) have solid foundations.

GYEN Plunges Despite Sector Rally: Market Punishes Speculative Names

One of the most dramatic reversals occurred with GYEN Co. (002177.SZ), which fell sharply to a daily limit-down of -9.83% on July 3, despite earlier momentum in the sector.

Prior to this drop, GYEN had enjoyed a five-day consecutive upward move—including five straight trading sessions where it hit the daily price limit—fueling speculation about its role in digital currency innovation.

Yet the company has repeatedly clarified: it does not engage in stablecoin or cryptocurrency-related businesses. In a June 6 statement on the Shenzhen Stock Exchange’s interactive platform, GYEN stated it focuses solely on intelligent financial equipment services and industrial park operations.

Lack of fundamental support appears to have caught up with sentiment. LHB (Dragon Tiger List) data showed major selling pressure on July 3:

This divergence underscores a critical point: investors are increasingly discerning between real innovation and mere thematic speculation.

Core Keywords Driving Market Sentiment

The key themes shaping investor behavior include:

These keywords are not just buzzwords—they reflect structural shifts in how value is stored, transferred, and integrated into traditional industries.

Frequently Asked Questions (FAQ)

Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, gold, or other cryptocurrencies. They combine blockchain efficiency with low volatility.

Q: Why is Hong Kong regulating stablecoins now?
A: To establish itself as a trusted digital finance hub in Asia. With clear rules set to take effect August 1, 2025, Hong Kong aims to attract compliant issuers while protecting consumers and financial stability.

Q: Can A-share companies issue stablecoins?
A: Not currently under mainland regulations. Most A-share firms linked to stablecoins are suppliers or enablers within payment or fintech systems—not direct issuers.

Q: Is DMALL’s Bitcoin purchase significant?
A: Yes. Buying BTC via HashKey Exchange—a regulated platform—signals compliance awareness and strategic intent beyond marketing.

Q: How do stablecoins differ from China’s e-CNY?
A: The e-CNY is a central bank digital currency (CBDC), fully backed by the PBOC and controlled by monetary authorities. Stablecoins are typically issued by private entities but must meet reserve requirements under new HK rules.

Q: Should investors avoid all “concept stocks”?
A: No—but exercise caution. Focus on firms with proven tech integration, regulatory alignment, and clear use cases rather than vague announcements.

👉 Stay ahead of regulatory changes shaping the future of digital finance.

Conclusion: From Hype to Fundamentals

The split performance between DMALL’s surge and GYEN’s collapse illustrates a maturing market. As Hong Kong rolls out its stablecoin regime, investors are rewarding companies with credible strategies and penalizing those lacking substance.

For forward-looking participants, the real opportunity lies not in chasing momentum—but in identifying firms that can bridge traditional finance with next-generation digital infrastructure through compliant innovation.

With policies solidifying and use cases expanding—from retail payments to RWA tokenization—the next phase of growth will favor depth over speculation.