Original | Odaily (@OdailyChina）
Author | Wenser (@wenser 2010）
Following Circle's ignition of the Altcoin season in the US stock market, securities firms such as Guotai Junan Securities, Tianfeng Securities, and Victory Securities have ushered in a collective surge based on the "crypto concept", reminiscent of the bustling scene after the BTC ETF and ETH ETF were approved in Hong Kong. Many people are rushing to enter the market through channels like Hong Kong Stock Connect or local Hong Kong account opening, hoping to earn their share in this "crypto Hong Kong Altcoin season". Despite this, due to policy requirements and capital thresholds, many are still unable to participate in this wave of hot stock rises. Odaily will provide a brief overview of the recent crypto Hong Kong Altcoin season and summarize the entry barriers for readers' reference.
Crypto Hong Kong Altcoin Season: A Market Surge Triggered by "Stablecoin Fever"
Looking closely at the arrival of this crypto Hong Kong Altcoin season, it mainly went through 3 stages of sentiment-driven rises - from the initial "Circle concept stocks", then to "stablecoin concept stocks", and finally "securities firm crypto concept stocks". After Circle, the "first stablecoin stock", successfully went public in the US stock market and its stock price surged nearly 10-fold in just over ten days, with its market value briefly soaring to $40 billion, stablecoins became the "latest and hottest narrative target" in the crypto market and traditional stock market. From this point, the Altcoin season no longer lingered in the crypto market but instead shifted to the traditional financial market.
On June 26, sources revealed that several local brokers in Hong Kong (such as Victory Securities and AIFM Securities) have completed the first-class license upgrade, and China Securities International is not the only Chinese securities firm applying for such a license. More institutions may enter the compliant crypto trading service in the future. It is worth noting that the business conducted by these brokers is a "distribution" type of trading service, not a self-operated exchange model. They mainly provide compliant trading channels for mainstream cryptocurrencies like BTC and ETH through establishing omnibus accounts on licensed exchanges, without involving high-risk Altcoins. Currently, these brokers have compliance requirements for customer due diligence, appropriateness management, and investor education similar to China Securities International, and all prohibit mainland Chinese residents from participating. At the time, influenced by this news, the Hong Kong stock of Victory Securities (08540.HK) surged over 100%, trading at 7.69 HKD. On June 27, an insider revealed that the Hong Kong subsidiary of Guangfa Securities Co., Ltd. began offering tokenized securities denominated in US dollars, Hong Kong dollars, and offshore RMB, with a daily interest-bearing and daily redeemable token called "GF Token". The US dollar token is based on the secured overnight financing rate (SOFR), while the interest rates for HKD and RMB products remain unclear. The source stated that this token is only available to institutional and professional investors, allowing idle short-term funds to generate interest and be converted between other tokenized assets. The token will be issued on-chain and traded on the licensed Hong Kong crypto exchange Hashkey. Since then, the three waves of the crypto Hong Kong stock Altcoin season have been interconnected and gradually approaching, contributing significantly to the trading volume of the Hong Kong stock market. Meanwhile, the Hong Kong IPO market has been enthusiastically pursued by mainland investors, with many rushing to the market hoping to strike gold. [The rest of the translation follows the same professional and accurate approach, maintaining the original meaning and tone while translating into English.]"Hong Kong Stock Fever" Is Not the First Time, the Scenario Replays in September and October Last Year
It is worth mentioning that the Hong Kong stock fever was driven by policy dividends in September and October last year.
According to reports, in early October last year, Tiger Securities' weekly account openings surged by 73.4%, and mobile app active users increased by 10% year-on-year; Futu Holdings, one of Hong Kong's largest online brokers, stated that weekly account opening inquiries were 40% higher than usual, with stock trading volume on its online platform increasing by 95% compared to the previous week, and the number of investors increasing by 60%.
The difference this time is that the "crypto component" in this Hong Kong stock fever has increased significantly, which is closely related to the proactive measures of the Hong Kong government.
On June 29, the Financial Secretary of Hong Kong, Chan Mao-po, wrote in a blog that financial technology has enormous potential in cross-border trade applications, with the goal of solving long-standing pain points such as slow and costly cross-border payments, and better serving the real economy in the payment field. The previously released "Digital Asset Development Policy Declaration 2.0" has four pillars, one of which is "promoting application scenarios and cross-sector cooperation," mentioning that stablecoins are a cost-effective alternative outside the traditional financial system, with the potential to bring about changes in payment and capital market activities, including cross-border payments. The stablecoin legislation will take effect on August 1 this year, and the special administrative region government and financial regulators will strive to create a favorable market environment, with necessary regulatory measures, to promote the application of stablecoins in different scenarios and help solve practical pain points for businesses and citizens.
In the future, as an important part of the global economic system and a financial window connecting the mainland market with external economies, Hong Kong and its stock market will play an even more crucial role.
As for whether this fever can continue, it may depend on more policy benefits and the emergence of "crypto Hong Kong stocks".
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For reference only, not investment advice
