The global digital currency landscape is entering a new phase of growth, fueled by regulatory advancements and increasing institutional adoption. In 2025, cryptocurrency-related stocks in China’s A-share market are experiencing renewed investor enthusiasm, particularly as policy developments in key financial hubs like Hong Kong and the United States lay the groundwork for broader stablecoin integration and digital currency applications.
According to data from Tonghuashun, the A-share digital currency index has outperformed the CSI 300 Index over the past month, year-to-date, and the last 12 months. This momentum is reflected across multiple listed companies, with shares of Hengbao Co., Ltd., Cuiwei Shares, Zhongke Jincai, Sifang Jingchuang, and Chutianlong all posting weekly gains exceeding 10%—signaling strong market confidence in the sector's long-term potential.
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Regulatory Tailwinds from Hong Kong and the U.S.
Recent legislative moves in both Hong Kong and the U.S. are acting as powerful catalysts for the digital asset ecosystem. On May 21, 2025, Hong Kong’s Legislative Council passed the Stablecoin Ordinance Bill in its third reading, marking a significant milestone in the region’s ambition to become a leading crypto hub in Asia.
Under the new framework, the Hong Kong Monetary Authority (HKMA) will oversee stablecoin regulation and licensing. Key requirements include:
- A minimum paid-up capital of HK$25 million for local licensed entities.
- Full backing of issued stablecoins by high-quality reserve assets.
- Transparent auditing and regular disclosure to ensure asset-liability parity.
This regulatory clarity not only enhances investor protection but also opens doors for financial technology firms with expertise in digital payments, cross-border settlements, and blockchain infrastructure.
Across the Pacific, the United States is also making strides. On June 5, 2025, Circle, the issuer of the USD Coin (USDC), went public on the New York Stock Exchange—the first initial public offering (IPO) by a major stablecoin provider. The stock surged 168.5% on its debut, closing at $83.23 per share with a market capitalization surpassing $18 billion.
While U.S. crypto regulation remains complex, Circle’s successful listing signals growing acceptance of digital assets within traditional financial markets. Analysts at CITIC Securities suggest that these developments could indirectly accelerate the adoption of digital currency interfaces in financial services, especially in areas like cross-border payment systems and supply chain finance.
What Are Stablecoins and Why Do They Matter?
Stablecoins are a class of cryptocurrencies designed to minimize price volatility by pegging their value to stable assets such as fiat currencies (e.g., USD, EUR) or commodities like gold. As of May 20, 2025, there were 232 active stablecoins globally, with a combined market capitalization exceeding $240 billion—accounting for approximately 8% of the total cryptocurrency market, according to CoinMarketCap.
These digital assets serve as a crucial bridge between traditional finance (TradFi) and decentralized finance (DeFi), enabling fast, low-cost transactions without exposure to the wild price swings seen in Bitcoin or Ethereum.
One notable real-world application is JD’s stablecoin, branded as JD-HKD, which is pegged 1:1 to the Hong Kong dollar. Operated by JD Bichain Technology (Hong Kong) Limited, it holds reserves in licensed financial institutions and undergoes regular audits. Merchants and consumers on JD’s cross-border e-commerce platforms can use JD-HKD for seamless settlements—bypassing high fees and multi-day processing times typical of conventional banking channels.
This practical use case exemplifies how stablecoins are transitioning from speculative instruments to functional tools in everyday commerce.
Top-Performing Cryptocurrency Stocks in A-Shares
The A-share market currently tracks 88 core digital currency concept stocks. Over the past year, 45 of them have gained more than 50%, with 23 achieving over 100% returns.
The top three performers are:
- Airun Software: +538.49%
- Winchannel Technology: +333.21%
- Yinzhijie Information Technology: +319.20%
These companies are primarily involved in financial IT systems, blockchain solutions, and digital payment infrastructure—areas directly aligned with national digital currency initiatives such as China’s central bank digital currency (CBDC), the e-CNY.
Chutianlong: Leading Digital RMB Innovation
Chutianlong emerged as a standout performer, hitting a daily trading limit (up 10%) on June 6, 2025. The company has recorded seven涨停 (trading halts due to price limits) over the past year alone.
Its 2024 annual report highlights the launch of the Chutianlong Digital RMB Smart Contract Platform, offering integrated solutions for transportation and retail sectors. Notably, Chutianlong executed the first overseas issuance of a digital RMB hardware wallet, demonstrating viable cross-border applications.
During an institutional investor briefing on June 5, 2025, the company confirmed its readiness to participate in Hong Kong’s regulated stablecoin framework and is actively advancing technologies related to the Digital Currency Bridge project—an initiative aimed at enabling multi-central bank digital currency (m-CBDC) interoperability across jurisdictions.
Hengbao Co., Ltd.: Expanding Digital Identity and Security
Hengbao shares rose 4.36% on June 6, with主力 funds (mainstream institutional capital) injecting over 441 million yuan ($61 million USD). Ranked eighth in Tonghuashun’s investor popularity index, Hengbao continues to strengthen its position in secure digital identity and mobile payment ecosystems.
The company has developed a “SIM + Industry Application + System Platform” integrated solution that combines quantum-safe communication, blockchain, and digital identity verification technologies. These capabilities support secure authentication and transaction processing in sectors ranging from banking to public services.
Hengbao is also deeply involved in pilot programs led by the People's Bank of China Digital Currency Research Institute and various financial institutions. It plans to expand its product suite to better support digital RMB pilots across provinces and industries.
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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 backed by reserves such as fiat currency (e.g., USD or HKD) or other high-quality assets. It reduces volatility while retaining the speed and accessibility of blockchain-based transactions.
Q: Why are Hong Kong and U.S. regulations important for stablecoins?
A: Clear regulatory frameworks from major financial centers like Hong Kong and the U.S. provide legal certainty, enhance investor trust, and encourage institutional participation. These rules help prevent fraud, ensure reserve transparency, and promote responsible innovation in digital finance.
Q: How do A-share cryptocurrency stocks benefit from digital currency adoption?
A: Companies involved in financial IT systems, payment gateways, blockchain infrastructure, and digital wallet development stand to gain as governments and enterprises adopt digital currencies. Regulatory progress often triggers investor optimism and capital inflows into related sectors.
Q: Is China’s digital yuan (e-CNY) considered a stablecoin?
A: While similar in stability, the e-CNY is not a traditional stablecoin—it’s a central bank digital currency (CBDC) issued directly by China’s central bank. Unlike privately issued stablecoins like USDC or JD-HKD, it represents sovereign legal tender with full government backing.
Q: Can individuals invest directly in stablecoins through A-share stocks?
A: Most listed Chinese firms are not issuers of stablecoins but provide enabling technologies such as custody systems, transaction processing platforms, or compliance tools. Investors gain indirect exposure through these enablers rather than direct ownership of digital assets.
Q: What risks should investors consider?
A: Despite strong performance, this sector faces regulatory uncertainty, technological risks, competitive pressures, and macroeconomic factors. Additionally, stock valuations may reflect speculative sentiment; thorough due diligence is essential before investing.
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Conclusion
The convergence of regulatory progress in Hong Kong and the U.S., coupled with rapid technological advancement in China’s domestic market, has created fertile ground for digital currency innovation. As stablecoin frameworks mature and real-world applications expand—from cross-border e-commerce to smart contract platforms—financial IT firms listed on A-shares are well-positioned to capture value.
With continued support from central banks and growing demand for efficient, secure digital transactions, the long-term outlook for this sector remains robust. For investors and innovators alike, now is a pivotal moment to engage with the evolving landscape of digital currencies, blockchain technology, and financial digitization.
Core Keywords: digital currency, stablecoin, Hong Kong, cryptocurrency stocks, digital RMB, blockchain, cross-border payments, financial innovation