Hong Kong stablecoin stocks slump after PBOC vows cryptocurrency crackdown

1/12/2025 11:54

Hong Kong-listed stocks with cryptocurrency-related businesses tumbled on Monday after China's central bank vowed to crack down on virtual currencies and flagged concerns about stablecoins.



On Saturday, the People's Bank of China (PBOC) warned of a resurgence in crypto speculation and vowed to crack down on illegal activities involving stablecoins.



The statement "has erased any ambiguity, speculation and illusions" around China's stablecoin policies, said Liu Honglin, founder of Man Kun Law Firm.



"Regulators have drawn a concrete red line on what used to be a vague borderline."



Shares of Yunfeng Financial Group, which has been expanding into cryptocurrency and tokenisation businesses, slumped more than 10% in early trading, putting them on track for their worst day in two months.



Bright Smart Securities and Commodities Group dropped roughly 7% and digital-asset platform OSL Group lost more than 5%.