Key Takeaways: InvestHK’s Alpha Lau says stablecoin firms are exploring entry into Hong Kong ahead of new regulation. Nearly 50% of recent mainland Chinese firms entering the city did so under national policy support. Licensed institutions are expected to drive digital asset adoption through regulated financial channels. Several potential stablecoin operators are in discussions to establish operations in Hong Kong , according to Alpha Lau Hai Suen, Director-General of InvestHK. Hong Kong Economic Journal reported on July 7 that Lau said the fintech sector places high importance on the development of stablecoins. She believes stablecoins can bring opportunities to the trade and investment markets and support global currency diversification. Hong Kong Sees Incoming Stablecoin Firms Ahead of Regulation Lau stated that the city expects new stablecoin-related businesses to begin setting up shortly after the upcoming regulation takes effect next month. She also suggested that Hong Kong’s stablecoin policy has become a key factor attracting these companies.” Lau added that nearly half of the 630 mainland Chinese firms that entered the Hong Kong market over the past two and a half years did so as part of a broader push encouraged by national policy. On macroeconomic shifts, Lau addressed risks related to U.S. trade policy. She said Hong Kong remains a free port, but businesses need to diversify beyond American markets. She also pointed to tax competitiveness and recent re-domiciliations of insurance firms as signals that Hong Kong retains appeal for corporate base-building under its revised policy framework. Sinolink Securities HK Eyes Digital Asset Expansion Sinolink Securities (Hong Kong), a wholly owned subsidiary of Sinolink Securities, is preparing to apply for a digital asset trading license in Hong Kong. The firm said it has held multiple discussions with domestic and international entities experienced in digital asset regulation and operations. It is currently advancing the formal application process for the license under the SAR’s evolving virtual asset framework. Sinolink’s subsidiary already holds five licenses from the city’s Securities and Futures Commission, covering securities dealing, futures contracts, investment advice, corporate finance, and asset management. The upcoming stablecoin regime in Hong Kong could be a shift among Asian financial hubs to regulate digital assets through formal licensing. While Singapore and Japan have made similar moves, Hong Kong’s focus on transactional use may set it apart in attracting certain operators. Sinolink’s entry suggests that licensed institutions will lead early activity. Rather than consumer apps, firms are tying virtual assets to trading, investment, and treasury services, linking new tools to existing financial systems under close regulatory oversight. Frequently Asked Questions (FAQs) What role do existing financial licenses play in virtual asset adoption? Firms like Sinolink use their existing regulatory approvals to extend into digital assets, allowing a smoother integration with traditional financial services. What types of companies are likely to lead early stablecoin use in HK? Entities already operating under SFC licenses are positioned to lead, especially those engaged in trading, asset management, and advisory services. What is the corporate tax impact on digital asset firms setting up in Hong Kong? At 16.5%, Hong Kong’s rate exceeds the global minimum but remains low enough to support firm-level relocation, especially when paired with re-domiciliation options. The post Hong Kong in Talks With Prospective Stablecoin Firms, Says InvestHK Chief appeared first on Cryptonews .