HK Stock Market Move | Stablecoin concept experiences widespread decline, BRIGHT SMART (01428) plunges 22%, Hong Kong Monetary Authority and Securities and Futures Commission speak out on market volatility related to stablecoins.

The concept of stablecoins is generally falling, as of the time of writing, BRIGHT SMART (01428) fell by 19.14% to HK dollars; LIANLIAN (02598) fell by 2.9% to HK$10.06; VICTORY SEC (08540) fell by 2.66% to HK$6.94; DL HOLDINGS GP (01709) fell by 1.26% to HK$148.5. On the news front, the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong issued a joint statement on the market fluctuations related to stablecoins. The statement mentioned that the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong have noticed recent market fluctuations related to the concept of stablecoins. These fluctuations seem to be caused by announcements, news, social media posts, or market speculations related to applying for a stablecoin issuer license in Hong Kong, engaging in related activities, or exploring the feasibility of such plans. Regarding some claims of recent contact with the financial regulatory authorities in Hong Kong, the Monetary Authority reiterated that a prudent and careful approach will be taken when considering applications for stablecoin issuer licenses, with a high threshold in place. The Monetary Authority emphasized that expressing intentions or submitting stablecoin license applications, as well as communications with the Monetary Authority and related institutions, are just part of the application process, and the issuance of licenses will ultimately depend on whether the application meets the licensing conditions. Given the significant uncertainty surrounding these plans or application results, the fluctuations driven by market sentiment or speculation highlight the necessity of remaining vigilant during market euphoria. Severe price fluctuations may lead to irrational decisions and expose investors to unnecessary risks.