HTSC·2025-06-09 01:50Investment Rating - The report maintains an "Overweight" rating for both the banking and securities sectors [11]. Core Insights - The implementation of the Hong Kong "Stablecoin Regulation" on August 1, 2025, is expected to boost the financial sector, particularly benefiting banks and securities firms involved in the stablecoin ecosystem [2][14]. - The report highlights a positive outlook for banks, securities, and insurance sectors, with banks being prioritized for investment opportunities [2][14]. - The anticipated reduction in life insurance preset rates in Q3 2025 is expected to resolve the cost-revenue mismatch in insurance products, enhancing sales momentum [2][41]. Summary by Sections Banking Sector - The Hong Kong "Stablecoin Regulation" is set to take effect on August 1, 2025, which will regulate stablecoin activities and establish a licensing system [3][17]. - Standard Chartered Bank is participating in a sandbox test for stablecoin issuers, while ZA Bank is the first digital bank in Hong Kong to provide reserve banking services for stablecoin issuers [3][18]. - The banking index rose by 1.68%, outperforming the CSI 300 index, with notable gains from banks like Nanjing Bank (+11.61%) and CITIC Bank (+5.65%) [15][16]. - Recommended quality stocks include Nanjing Bank, Hangzhou Bank, Chengdu Bank, Shanghai Bank, and招商银行 (China Merchants Bank) [4][46]. Securities Sector - The report notes a surge in interest in stablecoin concepts, which has positively impacted the non-bank financial sector, particularly securities firms [2][38]. - Several securities firms have announced a reduction in margin interest rates to 0.05%, following the decrease in deposit rates by major banks [39][40]. - The approval of equity changes for multiple securities firms by the CSRC is expected to enhance market sentiment and provide structural opportunities [3][38]. Insurance Sector - The report anticipates a likely reduction in life insurance preset rates in Q3 2025, which is expected to improve the cost-revenue dynamics of insurance products [41][44]. - The insurance sector has shown resilience, with stocks like New China Life Insurance rising by 12% [41]. - Recommended insurance stocks include China Pacific Insurance, Ping An Insurance, and AIA Group [42][46].