Core Insights - The report emphasizes the importance of proactive discovery in the financial market rather than merely relaying information [1] Domestic Financial Market - The Shanghai Composite Index closed at 3402.66, with a slight increase of 0.01% [3] - The Shenzhen Component Index closed at 10234.33, showing a decrease of 0.11% [3] - The ChiNext Index closed at 2067.15, reflecting an increase of 0.26% [3] - The Hang Seng Futures Index closed at 31013.11, with a decline of 1.2% [3] Macro News Summary - The central bank and foreign exchange bureau are increasing financial support for cross-strait integration development [5] - The Ministry of Industry and Information Technology supports automotive companies in adhering to a payment term of no more than 60 days [5] - The National Development and Reform Commission emphasizes the coordination of economic reforms with education, technology, and talent [5] Industry Latest Developments - A solid-state battery conference is scheduled for next week, indicating the industry is on the verge of mass production, with related stocks including Honggong Technology and Guoxuan High-Tech [6] - The biomanufacturing sector is receiving policy support for the establishment of pilot platforms, with related stocks including Huaxi Biological and Chuaning Biological [6] - The stablecoin market is experiencing rapid growth, with increasing activity in cross-border payment applications, related stocks include Newland and Dongxin Peace [6] Company Focus - Xidian Co., Ltd. is the first domestic company to achieve industrial application of 12-inch wafer probe stations [7] - Antarctic Light is currently the only LCD backlight module supplier certified by Nintendo, maintaining a stable position in the Switch 2 backlight module supply [7] - Jin Modern has adapted its low-code development platform to the DeepSeek large model [7] - Lanshi Heavy Industry's wholly-owned subsidiary plans to acquire 100% equity of Qingdao Equipment for 99.9821 million yuan, enhancing its nuclear equipment manufacturing capabilities [7] Market Review and Outlook - On June 12, the market opened slightly lower and exhibited a fluctuating pattern, with the Shanghai Composite Index briefly falling below 3400 points before recovering [8] - The total trading volume in the Shanghai and Shenzhen markets reached 1.27 trillion yuan, an increase of 16.3 billion yuan from the previous trading day [8] - Sectors with notable gains included precious metals, beauty care, jewelry, diversified finance, and cultural media, while shipping ports, liquor, electronic chemicals, and coal sectors faced declines [8] - The report indicates a cautious outlook for the market, with a potential for further consolidation, while maintaining a bullish medium-term perspective [8]

Core Viewpoint - The report by Zhonghang Securities highlights the role of stablecoins in the Real World Assets (RWA) framework, emphasizing their functions in stabilizing pricing, enhancing liquidity, connecting DeFi, optimizing compliance, and attracting institutional funds [1][2] RWA Business and Regulation - RWA business involves the digitization of real-world assets into tokenized products, requiring clarity on asset value, ownership, and legal status [2] - The digitization process must comply with government regulatory frameworks if it involves securities [2] - Revenue sources are diversified, covering issuance, trading, and operational aspects, including issuance service fees, liquidity management returns, asset operation shares, and compliance pricing [2] - Hong Kong has proactively established a regulatory framework for virtual assets and stablecoins, with the Securities and Futures Commission releasing guidelines as early as 2018 [2] RWA Technology, Market, and Ecosystem - RWA utilizes blockchain technology to convert physical assets into tradable digital tokens, supported by a three-layer technology architecture: core architecture, middleware, and application layers [3] - According to Citibank's forecast, the market for tokenized digital securities could reach $4-5 trillion by 2030, while trade finance based on distributed ledger technology (DLT) may reach $1 trillion [3] - The industry forms a closed-loop ecosystem through collaboration, with asset issuers providing underlying value, technology service providers enabling digitization, liquidity providers activating markets, compliance parties ensuring legality, investors injecting funds, and support service providers maintaining operational safety [3] Investment Recommendations - Zhonghang Securities suggests focusing on three growth themes: blockchain + fintech, renewable energy + RWA, and cross-border payments [4] - Specific companies to watch include: - Blockchain + Fintech: Zhongke Jin Cai (002657.SZ), Sifang Jingchuang (300468.SZ), Shenzhou Information (000555.SZ), Yuxin Technology (300674.SZ), Hengbao Co., Ltd. (002104.SZ) [4] - Renewable Energy + RWA: Langxin Group (300682.SZ), GCL Energy Technology (002015.SZ) [4] - Cross-Border Payments: Hailian Jinhui (002537.SZ), Newland (000997.SZ), Lakala (300773.SZ), Xinguodu (300130.SZ), Tianyang Technology (300872.SZ) [4]

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **stablecoin industry**, focusing on the roles of **Circle** and **Coinbase** in the ecosystem [1][2][3]. Core Insights and Arguments - **Stablecoins** optimize cross-border trade payment efficiency, reducing transaction costs to less than one dollar and transaction times to minutes, posing a potential alternative to traditional SWIFT systems [1][4]. - In high-inflation regions, stablecoins provide residents with a means to hold relatively stable value, similar to holding US dollars, especially when local currency is restricted [1][5]. - **Circle's Business Model**: Circle generates revenue through reserve interest and API fees, relying on the circulation of USDC and its minting/redemption mechanism. However, it faces high distribution and transaction costs, with over half of these costs going to Coinbase [1][12][13]. - **Coinbase's Role**: Coinbase plays a crucial role in Circle's business model by providing custody services for USDC, with its share of revenue increasing from about 33% to over 50% following the Silicon Valley Bank collapse [1][13]. - The **stablecoin industry chain** includes issuers, exchanges, public chain infrastructure, and application layers, with issuers and exchanges being the primary commercial potential areas [1][14]. Important but Overlooked Content - The global stablecoin market size reached **$251.1 billion** as of 2023, with Tether (USDT) and Circle's USDC accounting for **$153.3 billion** and **$61.4 billion**, respectively [2]. - The **tokenization of real-world assets (RWA)** requires stablecoins as a key connector, significantly reducing intermediary costs and enhancing market efficiency [3][18]. - The **importance of global payment licenses** for stablecoin transactions is emphasized, as they enable the conversion of virtual assets into real goods, enhancing practical application value [21][22]. - Regulatory measures in regions like the EU, US, and Hong Kong are being implemented to promote the stablecoin industry, indicating a move towards formalization and compliance [16][25]. - The potential for **A-share companies** like Newland and New Guodu to participate in overseas business layouts for RMB or HKD stablecoins is noted, given their existing overseas payment acquisition operations [24]. Future Outlook - The future of RWA development is promising, with the potential for significant reductions in intermediary costs if stablecoins achieve widespread usage [19]. - The stablecoin industry is currently facing regulatory challenges, with policies still in development, making regulatory progress a critical factor for industry growth [25][26].

Group 1 - The China Securities Financial Technology Theme Index (930986) decreased by 1.49% as of June 10, 2025, with mixed performance among constituent stocks [3] - Chutianlong (003040) led the gains with an increase of 3.97%, while Xinzhi Software (688590) experienced the largest decline at 9.48% [3] - The Financial Technology ETF (516860) fell by 1.36%, with a latest price of 1.23 yuan and a turnover rate of 4.34% [3] Group 2 - Zhongke Shuguang announced a merger plan with Haiguang Information, which is seen as a milestone event in China's information technology sector [3] - This merger is expected to enhance the integration of resources in the industry chain and promote the upgrade of domestic computing power and information technology [3] - The financial technology sector is anticipated to enter a new cycle by 2025, with accelerated industry chain integration focusing on domestic computing power, hardware, operating systems, and EDA [3] Group 3 - The Financial Technology ETF has seen a significant growth of 843.93 million yuan in the past three months, ranking in the top third among comparable funds [4] - As of June 9, 2025, the ETF's net value increased by 83.67% over the past year, placing it in the top 0.60% of equity funds [4] - The ETF's historical performance includes a maximum monthly return of 55.92% and an average monthly return of 10.19% [4] Group 4 - The management fee for the Financial Technology ETF is 0.50%, and the custody fee is 0.10%, which are among the lowest in comparable funds [5] - The ETF has the highest tracking accuracy among comparable funds, with a tracking error of 0.046% over the past year [5] - The top ten weighted stocks in the index account for 52.03% of the total, with Tonghuashun (300033) having the highest weight at 9.50% [5][7]

Investment Rating - The industry investment rating is "Overweight" [3] Core Insights and Investment Recommendations - RWA (Real World Assets) refers to the tokenization of traditional physical assets through blockchain technology, enabling real-time trading and circulation of these assets in a digital network, addressing liquidity issues, trust deficits, and high transaction costs in traditional finance, thus presenting new opportunities for global economic and financial digital innovation [4][8] - The potential market for tokenized digital securities is projected to reach $4-5 trillion by 2030, with trade finance based on distributed ledger technology (DLT) expected to reach $1 trillion [4][8] - The report emphasizes the importance of focusing on three growth themes: blockchain + fintech, renewable energy + RWA, and cross-border payments, highlighting specific companies to watch in each category [4] Summary by Sections RWA Overview - RWA involves the conversion of traditional assets into digital tokens, facilitating online trading and addressing challenges posed by globalization [4][8] - The report outlines the diverse asset classes that can be tokenized, including real estate, private credit, government bonds, commodities, and equities [39] Business Development and Regulation - The process of RWA issuance requires compliance with regulatory frameworks, ensuring asset value, ownership, and legal status are clearly defined [4][30] - The report discusses the regulatory landscape in regions like Hong Kong and the U.S., highlighting the establishment of frameworks for virtual assets and stablecoins [47][49] Technology, Market, and Ecosystem - RWA technology is structured in three layers: core architecture, middleware, and application layer, facilitating the conversion of physical assets into tradable digital tokens [52] - The ecosystem involves various participants, including asset issuers, technology service providers, liquidity providers, compliance entities, and investors, creating a collaborative environment for RWA [9][63] - The report predicts that the global RWA market could exceed $16 trillion by 2030, driven by the increasing adoption of stablecoins and regulatory advancements [54][58]

Investment Rating - The industry investment rating is "Overweight" [3] Core Insights and Investment Recommendations - RWA (Real World Assets) refers to the tokenization of traditional physical assets through blockchain technology, enabling real-time trading and circulation of these assets in a digital network. This innovation addresses issues such as liquidity shortages, trust deficits, and high transaction costs in traditional asset markets, presenting new opportunities for global economic and financial digital innovation [4][8]. - The potential market for tokenized digital securities is projected to reach $4-5 trillion by 2030, with trade finance based on distributed ledger technology (DLT) expected to reach $1 trillion [4][8]. - The report suggests focusing on three growth themes: Blockchain + Fintech, New Energy + RWA, and Cross-Border Payments, highlighting specific companies within these sectors [4]. Summary by Sections RWA Overview - RWA involves the tokenization of real-world assets, allowing for online trading of digital tokens representing these assets. This process enhances liquidity and operational efficiency while breaking down geographical barriers for investors [4][9]. RWA Business and Regulation - The tokenization process requires clear valuation, ownership, and legal status of the underlying assets. Regulatory frameworks are crucial, with Hong Kong and the U.S. leading in stablecoin regulation [4][30]. - The report outlines a four-step process for issuing RWA, emphasizing compliance, cash flow, technological mapping, and regulatory sandboxing [33][34]. Technology, Market, and Ecosystem - RWA technology is structured in three layers: core architecture, middleware, and application layer, facilitating the conversion of physical assets into tradable digital tokens [52]. - The stablecoin market, a significant component of RWA, is projected to grow substantially, with the total market capitalization expected to reach $2 trillion by 2028 [54][58]. - The RWA ecosystem is diverse, involving various stakeholders such as asset issuers, technology providers, liquidity providers, and regulatory bodies, all contributing to the operational framework [63][64]. Investment Opportunities - The report identifies key companies to watch in the RWA space, including those involved in blockchain technology, new energy projects, and cross-border payment solutions [4][27].

Core Viewpoint - The financial technology sector is experiencing significant growth, driven by the recent implementation of the stablecoin legislation in Hong Kong and the successful IPO of Circle, indicating strong investor interest in stablecoins and financial technology innovations [3][4]. Group 1: Market Performance - As of June 9, 2025, the CSI Financial Technology Theme Index (930986) rose by 1.13%, with notable increases in constituent stocks such as Chutianlong (10.01%) and Dongxinheping (9.99%) [3]. - The Financial Technology ETF (516860) increased by 1.05%, with a latest price of 1.25 yuan and a trading volume of 13.05 million yuan [3]. - The Financial Technology ETF has seen a significant increase in shares, with a growth of 37 million shares over the past three months, ranking it in the top third among comparable funds [4]. Group 2: Financial Metrics - The Financial Technology ETF's net asset value increased by 81.91% over the past year, ranking 18th out of 2845 index equity funds, placing it in the top 0.63% [4]. - The ETF has recorded a maximum monthly return of 55.92% since inception, with an average monthly return of 10.19% and a historical three-year holding profit probability of 97.01% [4]. - The ETF's management fee is 0.50%, and the custody fee is 0.10%, which are among the lowest in comparable funds [5]. Group 3: Top Holdings - As of May 30, 2025, the top ten weighted stocks in the CSI Financial Technology Theme Index accounted for 52.03% of the index, with Tonghuashun (9.50%) and Dongfang Caifu (9.01%) being the top two [5][7]. - The top ten stocks include notable companies such as Hengsheng Electronics, Runhe Software, and Newland, indicating a diverse representation within the financial technology sector [5][7].

Group 1 - Circle's stock has surged 247% in the two trading days since its IPO [1] - Major tech companies like Apple, Google, and X are in preliminary talks with crypto firms to integrate stablecoins, aiming to reduce transaction costs and optimize cross-border payment processes [1] - Stablecoins are primarily backed by traditional assets, with fiat-collateralized stablecoins like USDT and USDC dominating over 90% of the global market [1] Group 2 - The introduction of the stablecoin regulation draft in Hong Kong is expected to enhance China's competitive participation in the market [2] - The launch of USD stablecoins may pressure weaker currencies, necessitating the enhancement of the RMB's use cases [2] - The blockchain currency system presents an opportunity for the RMB to potentially overtake the USD, despite the long road ahead under traditional frameworks [2] Group 3 - Companies involved in stablecoin or RWA issuance include Langxin Group, ZhongAn Online, and Lianlian Digital [3] - Infrastructure service providers in the stablecoin space include Zhongke Jincai, Yuxin Technology, Sifang Jichuang, Yuyin Technology, and Xiongdi Technology [4] - Companies in the cross-border payment ecosystem include Newland, New Guodu, and Lakala [5]

Investment Rating - The industry maintains a "Recommended" investment rating, indicating a positive outlook for the sector's fundamentals and expected performance exceeding the benchmark index [3]. Core Insights - The demand for AI inference has significantly increased, with Broadcom reporting AI revenue exceeding expectations, highlighting ongoing investment in the AI sector [6][9]. - Circle, the first publicly traded stablecoin company, saw its stock price surge nearly 250% shortly after its IPO, reflecting strong market interest and potential for rapid growth in the stablecoin sector [6][14]. - The report emphasizes the importance of AI infrastructure investment and the anticipated growth of stablecoins as regulatory frameworks develop, positioning them as a bridge between traditional finance and Web3 [6][14]. Summary by Sections Section 1: Overseas AI Computing Power - Broadcom's Q2 2025 revenue reached $15.004 billion, a 20% year-over-year increase, with AI revenue surpassing $4.4 billion, growing 46% year-over-year [9][10]. - The company anticipates continued growth in AI semiconductor sales, projecting revenue to accelerate to $5.1 billion in Q3 2025 [11]. - The market for AI XPU and networks is expected to reach a serviceable available market (SAM) of $60 billion to $90 billion by 2027, with Broadcom aiming for a leading market share [11]. Section 2: Circle's Market Performance - Circle's stock price increased by approximately 168.48% on its first trading day, closing at $83.23, significantly above its IPO price of $31 [14]. - As of May 23, 2025, the circulating supply of USDC exceeded $61 billion, making it the second-largest stablecoin globally [14][15]. Section 3: Market Performance Review - The computer sector rose by 2.80% in the first week of June 2025, with notable gains from companies such as Huijin Co., Qingyun Technology, and Zhongdian Xilong [18][19].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The successful IPO of stablecoin giant Circle on June 5, 2025, marked a significant milestone, with a first-day increase of 168.48% and a market capitalization of $18.4 billion [4] - Circle's USDC has become the second-largest dollar-pegged stablecoin globally, with a market cap of approximately $60.9 billion as of April 2025, narrowing the gap with Tether (USDT) [4] - The report emphasizes the growing opportunities in the digital currency market, particularly in decentralized finance (DeFi), cross-border payments, and digital asset trading [5][7] Summary by Sections Industry Overview - The report highlights the positive outlook for the computer industry, with a projected growth trajectory [1][2] Circle's Business Model - Circle's revenue model is primarily based on the yield from reserves invested in U.S. Treasury bonds, with total revenue reaching $1.676 billion by the end of 2024, a 15.57% increase from 2023 [6] - The majority of Circle's revenue (99.1%) comes from reserve income, although net profit has decreased to $156 million due to rising distribution and transaction costs [6] USDC Applications - USDC is widely used in various applications, including: 1. Decentralized Finance (DeFi): Dominating stablecoin trading volume (approximately 69%) on platforms like Ethereum and Solana [5] 2. Cross-Border Payments: USDC offers fast (settlement in seconds) and low-cost (less than $0.01) transactions, making it ideal for global remittances [5] 3. Digital Asset Trading: USDC serves as a key liquidity source in cryptocurrency trading, particularly in centralized exchanges like Coinbase [5] Investment Recommendations - The report recommends several companies that are expected to benefit from the digital currency market, including Langxin Group, Jingbeifang, and others [7]