Following Circle’s explosive IPO that sparked the U.S. altcoin season, Hong Kong’s stock market has experienced three waves of crypto-themed rallies: from Circle-related stocks, to stablecoin narratives, and finally broker-driven crypto concepts. Multiple stocks saw sharp surges, igniting a new round of speculative enthusiasm.
Wave 1: Circle-Linked Stocks
Circle’s U.S. listing and the release of Hong Kong’s Stablecoin Regulation triggered a major rally in local digital asset stocks like Lianlian DigiTech, Yeahka, and OKG Technology. Huaxing Capital, an early investor in Circle, hit a yearly high.
Wave 2: Stablecoin Concept Stocks
Tech giants like JD.com and Alibaba announced their ambitions in stablecoin development, while rumors of Ant Group applying for a license pushed concept stocks such as Yunfeng Financial and Sitong Holdings into soaring gains. Stablecoins became the latest cross-market narrative driver.
Wave 3: Broker-Driven Crypto Stocks
Guotai Junan International secured regulatory approval to offer virtual asset trading services, triggering a two-day price surge. Victory Securities and others followed suit, with market expectations that more brokerages will enter the compliant crypto service space.
Behind the Hype: IPO Frenzy and Rising Barriers
IPO Boom: In H1 2025, IPO fundraising in Hong Kong surged 7x year-over-year, with an average oversubscription of 642x. Multiple new listings were heavily oversubscribed.
Limited Access: Mainland investors face strict entry barriers via Stock Connect, including a 500,000 RMB asset threshold, high-risk investor classification (C4), and a required knowledge test.
Tighter Onboarding: Major platforms like Futu and Longbridge have shut down “proof-of-funds” accounts and now require overseas residency or employment proof.
Lower Trading Costs: The Hong Kong Stock Exchange removed minimum and maximum trading fee caps, reducing friction—though double-sided fees remain.
Policy Momentum: Bridging Crypto and Traditional Finance
Hong Kong’s Stablecoin Regulation will officially take effect on August 1, providing a legal foundation for compliant crypto trading.
Financial Secretary Paul Chan reiterated support for fintech and cross-border payment innovation, positioning Hong Kong as a vital bridge between TradFi and Web3.
Conclusion
The “crypto altcoin season” in Hong Kong has brought visible excitement and opportunity, but access remains limited. As regulations mature, institutional involvement grows, and compliant channels expand, Hong Kong is set to play a pivotal role in connecting global capital with the crypto economy.