Stablecoin Stocks Surge 20% in A-share Market

On June 25th, concept stocks related to stablecoins in the A-share market experienced a significant surge. Several companies, including Jingbeifang, GreenChip Stock, and Hailian Golden Union, hit their daily limit up, with Hailian Golden Union achieving this for three consecutive days. The previous day, Dongxinheping and Hailian Golden Union also hit their daily limit up, while Jincai Interconnection saw a 6.46% increase for the entire day after hitting the limit up in the morning session. On June 23rd, Sifang Jingchuang saw a 20% increase, marking an 82% rise for the month. Additionally, Chutianlong and several other concept stocks, such as Ubix Network, Lakala, Huafeng Fiber, Advanced Digicom, Digital Certification, and Jingbeifang, also experienced notable gains.

In response to this market movement, Wang Pengbo, Chief Financial Analyst of Boton Consulting, provided insights. He noted that while stablecoins have shown certain advantages in areas like cross-border payments, they are not a replacement for the existing payment system. Instead, stablecoins serve as a supplement within the broader payment ecosystem. Wang Pengbo also highlighted that, from the perspective of the mainland market, stablecoins do not have a significant opportunity due to the already low market rates and the convenience of the existing payment system, which covers various small-value, high-frequency scenarios. Additionally, the central bank has explicitly prohibited the use of non-sovereign cryptocurrencies for payments, further limiting the potential for stablecoins in the market.