AOM International Group (HKG:0381) entered a preliminary agreement with Yanji's municipal government in China to develop a digital economy-related business in Hong Kong, according to a Hong Kong bourse filing Thursday.

Shares of the toys and gifts maker rose nearly 37% in morning trade Friday.

Under the memorandum of understanding, both sides will negotiate a formal agreement within 60 days.

The partnership could see the creation of a blockchain-based platform to help SMEs tokenize assets and improve financing using yuan-pegged stablecoins, AOM said.

It could also see the development of a cross-border bonus points exchange system, enabling tourists to spend loyalty points across China, Korea, and Russia using stablecoins.