Shares of Lianlian DigiTech (02598.HK) soared by an impressive 48.70% in intraday trading, significantly outpacing its earlier reported 19% gain. This dramatic surge comes as Hong Kong-listed stablecoin concept stocks defied the overall market trend, with Lianlian DigiTech leading the pack among its peers.

The extraordinary rally is directly linked to a major regulatory development in Hong Kong's digital asset space. On May 30, the Government of the Hong Kong Special Administrative Region officially enacted the Stablecoin Regulation into law, publishing it in the Gazette. This follows the Legislative Council's passage of a bill on May 21 to establish a licensing regime for issuers of 'fiat-referenced stablecoins' - digital currencies pegged to legal tender.

This regulatory milestone positions Lianlian DigiTech, a key player in the digital financial services sector, at the forefront of a potentially booming market for regulated stablecoins in Hong Kong. The new legislation aims to strike a balance between promoting financial innovation and safeguarding financial stability, which investors seem to interpret as a significant opportunity for companies like Lianlian DigiTech. As Hong Kong solidifies its stance on digital assets, the market appears to be betting heavily on Lianlian DigiTech's potential to capitalize on this evolving landscape.