Core Viewpoint - The Hong Kong Monetary Authority (HKMA) emphasizes the need for a cautious approach to the growing interest in stablecoins, highlighting the importance of regulatory measures to ensure their safe and sustainable development [1][2]. Regulatory Framework - The Legislative Council of Hong Kong passed the "Stablecoin Ordinance" in May, establishing a licensing regime for stablecoin issuers pegged to fiat currencies, which will take effect on August 1 [2][5]. - The HKMA is currently consulting on specific guidelines for implementing the ordinance, aiming to enhance the regulatory framework for digital asset activities [2][5]. Licensing and Approval Process - The HKMA anticipates issuing only a limited number of licenses in the initial phase due to high entry barriers, requiring stablecoin issuers to demonstrate real-world application scenarios and sustainable business operations [5][6]. - Licensed stablecoin issuers must establish trust with market participants and ensure compliance with local and international regulations, including anti-money laundering measures [6][7]. Market Development and Risk Management - Stablecoins are viewed as payment tools rather than investment vehicles, with their future development largely dependent on market forces [3][4]. - The HKMA is actively involved in international regulatory discussions, including the Financial Stability Board's guidelines for stablecoin regulation, to address inherent risks and promote cross-border regulatory cooperation [4][7]. Local Adaptation and International Standards - The HKMA is developing a regulatory framework that aligns with local conditions while adhering to international standards, aiming to foster responsible and sustainable growth in the digital asset sector [7].

Important Market News - The Ministry of Commerce announced export control measures for rare earths, emphasizing their dual-use nature and compliance with international practices. China will continue to review export license applications and has approved a certain number of compliant requests [1] - As of May 2025, China's foreign exchange reserves reached $328.53 billion, an increase of $3.6 billion from April, while gold reserves rose to 7.383 million ounces (approximately 2,296.37 tons), marking a continuous increase for seven months [1] Industry Insights - Deutsche Bank is exploring stablecoins and tokenized deposits, considering options for issuing its own tokens or joining industry initiatives. The bank recognizes the potential for stablecoins, especially in the U.S. regulatory environment, and sees various roles it could play in the stablecoin sector [2] - The storage industry is experiencing a shift due to anticipated production cuts of DDR4 memory, leading to price increases and supply shortages. The demand for DDR4 remains stable in niche markets, and the overall market is expected to improve by the second half of 2025, driven by AI device demand and inventory adjustments [3] - The Ministry of Industry and Information Technology is promoting the integration of artificial intelligence and manufacturing, focusing on enhancing software and hardware capabilities. The initiative aims to accelerate the intelligent upgrade of key industries and foster innovation in industrial data and models [4][5] Company Updates - Ruoyu Chen announced a share reduction plan by its shareholder, Langzi Co., intending to reduce up to 4.768 million shares, accounting for 3% of the total share capital. The stock has seen a significant increase of 535% over the past year [5] - Silk Road Vision disclosed plans for share reductions by its executives, with specific limits on the number of shares to be sold [5] - Mindong Electric Power announced a plan to reduce 4,579,514 shares, representing 1% of its total share capital, between June 30 and September 26, 2025 [5] - *ST Haiyue received a decision from the Shanghai Stock Exchange for stock delisting, with the last trading date expected to be July 4, 2025 [6]

Group 1 - Deutsche Bank is exploring the potential of stablecoins and tokenized deposits [1]