Industry Experts: Some Stablecoin Concept Stocks Are Overheated in the Short Term, Caution Advised for Potential Pullbacks

According to Jinse Finance, in recent days, the share prices of several listed companies in the Hong Kong stock market have surged due to their involvement in the "stablecoin concept." During intraday trading on July 10, Hong Kong-listed Puxing Energy soared by more than 280% at one point. The company had earlier announced its subscription to Series A preferred shares issued by HashKey Holdings, which focuses on global asset management in blockchain technology, digital assets, and providing compliant over-the-counter digital asset trading services. Another Hong Kong stock experiencing unusual movement was Deren Holdings, which rose by more than 70% during early trading. The surge in the company's share price is also related to digital currencies. After the market closed yesterday, Deren Holdings announced plans to tokenize assets with a total value of up to HKD 500 million. However, some industry insiders have cautioned that certain stablecoin concept stocks are experiencing excessive short-term speculation, and investors should be aware of the risk of a pullback. (Securities Times)