Core Viewpoint - The recent volatility in the stock prices of companies like Lianlian Digital is linked to the Hong Kong government's enactment of the Stablecoin Regulation, which establishes a regulatory framework for stablecoin issuers [3][5]. Company Insights - Lianlian Digital experienced a stock price surge of 64.27% on June 2, reaching HKD 16.46 per share, followed by a drop of 39.25% on June 3, falling to HKD 10 per share [3]. - The company holds a significant position in Hong Kong's virtual asset ecosystem, with its subsidiary DFX Labs having obtained a Virtual Asset Trading Platform license from the Hong Kong Securities and Futures Commission [5]. - Lianlian Digital reported a total payment volume of RMB 3.30 trillion in its digital payment business for the fiscal year 2024, marking a year-on-year increase of 64.7%, and total revenue of RMB 1.315 billion, up 27.9% [5]. Industry Trends - The Hong Kong Legislative Council passed the Stablecoin Regulation on May 21, which includes a licensing system for stablecoin issuers linked to fiat currencies [5]. - Several A-share listed companies are also engaging in stablecoin-related activities, with Zhongke Jincai establishing a Hong Kong subsidiary to explore stablecoin and financial innovation [6]. - Tianyang Technology is promoting a credit card product that allows for top-ups using stablecoins, indicating a growing demand for stablecoins in cross-border e-commerce and trade [6]. Market Analysis - Major securities firms, including CITIC Securities and Guotai Junan, are actively analyzing the implications of stablecoins, highlighting their potential to enhance market liquidity and facilitate cross-border payments [7]. - Stablecoins are expected to reduce transaction costs and time in cross-border payments, with the potential to bypass traditional systems like SWIFT [7]. - CITIC Jiantou suggests that compliant stablecoins could activate liquidity in traditional assets such as real estate and bonds, creating a new market worth trillions [8].

Group 1 - The core point of the article is the significant surge in the stock price of Lianlian Digital, which saw an increase of up to 147% within three trading days, driven by the Hong Kong government's new regulatory framework for virtual assets [1][4] - Lianlian Digital's stock price rose from 7.29 HKD to a peak of 18 HKD, with a notable increase of 69.66% by 15:20 on June 2 [1] - The new regulatory framework includes the establishment of a licensing system for issuers of "fiat-backed stablecoins," marking a major legislative milestone in Hong Kong [1][3] Group 2 - Lianlian Digital has a first-mover advantage in the Hong Kong virtual asset ecosystem, holding a Virtual Asset Trading Platform (VATP) license issued by the Hong Kong Securities and Futures Commission [3] - The company reported a total payment volume of 3.30 trillion RMB in its digital payment business for the year 2024, reflecting a year-on-year increase of 64.7% [4] - The overall cryptocurrency sector experienced a boost, with other companies like OKLink and New Huo Technology also seeing significant stock price increases, influenced by the strong performance of Bitcoin, which maintained a high price of 105,000 USD [4]