Jin Rong Jie·2025-06-26 11:01Core Viewpoint - The recent stock price volatility of ZhongAn Online (06060.HK) is attributed to its planned placement of H-shares at a discount, which has raised concerns among investors despite the company's strong performance in the stablecoin sector [1][4]. Group 1: Company Performance - ZhongAn Online's stock price fell by 6.62% to HKD 18.62 per share, with a market capitalization of approximately HKD 27.37 billion, despite a significant trading volume of HKD 3.288 billion on the day [1]. - The company has seen a substantial rebound in stock price since late May, with a maximum increase of over 70%, driven by its positioning in the stablecoin market [1][3]. - For the year 2024, ZhongAn Online's total premium income is projected to reach RMB 33.417 billion, reflecting a year-on-year growth of 13.3% [2]. Group 2: Industry Context - The Hong Kong Legislative Council passed the Stablecoin Bill on May 21, 2023, which will take effect on August 1, 2023, establishing a comprehensive regulatory framework for fiat-backed stablecoins [2]. - Analysts predict that the stablecoin market could reach a size between USD 1.6 trillion and USD 3.7 trillion by 2030, indicating significant growth potential in the sector [2]. - ZhongAn Online is positioned as a leader in the stablecoin space, having become the first digital bank in Hong Kong to provide reserve banking services for stablecoin issuers [3]. Group 3: Shareholder Actions - Major shareholders, including Ant Group and Youfu Holdings, have reduced their holdings in ZhongAn Online by approximately 51.26 million shares, cashing out over HKD 900 million [4]. - Ant Group stated that the share reduction is a normal investment decision aimed at optimizing capital allocation and will not affect its business collaboration with ZhongAn Online [4].