Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [31]. Core Insights - The report highlights a resonance in AI development both domestically and internationally, driven by the launch of OpenAI's general-purpose AI Agent and advancements in large models [11][12]. - The introduction of the world's first RMB tokenized fund by Huaxia Fund (Hong Kong) is noted, which enhances the offshore RMB hub status of Hong Kong and improves transparency and settlement efficiency through blockchain technology [14]. - NVIDIA's H20 chip has received export approval to China, which may alleviate the short-term shortage of inference computing power, while the launch of the RTX Pro GPU is expected to accelerate industrial robot and autonomous driving transformations [15][16]. Summary by Sections AI Development - OpenAI released the ChatGPT Agent, integrating various tools for enhanced human-computer interaction, achieving significant performance in benchmark tasks [11][12]. - The Kimi K2 model, launched by Moonshot AI, is the largest open-source model to date, demonstrating superior capabilities in coding and task execution [12][13]. Financial IT Sector - Huaxia Fund (Hong Kong) launched the first RMB tokenized fund, which allows investors to subscribe or redeem through traditional and digital channels, filling a gap in RMB on-chain income-generating assets [14]. Chip and Computing Power - NVIDIA's H20 chip, while limited in performance compared to its flagship models, is expected to support vertical model inference and may impact local chip manufacturers [15][16]. - The RTX Pro GPU is designed for digital factories and robotics, enhancing sensor simulation capabilities crucial for industrial applications [16]. Company Recommendations - The report suggests focusing on companies in the large model, computing power, and financial IT sectors, including Keda Xunfei, Kingsoft Office, and others [4].

Core Viewpoint - Huaxia Fund (Hong Kong) has successfully issued tokenized funds in USD and RMB, completing its layout across three major currencies, amidst uncertainties in regulation, technology, and market perception [1][9]. Group 1: Tokenized Funds - Tokenized funds convert traditional currency fund shares into digital tokens that can circulate on the blockchain, maintaining the same underlying assets as traditional money market funds [1][2]. - The disruptive potential of tokenized funds lies not in returns or safety, but in the transformative possibilities brought about by their new form [1][2]. Group 2: Market Context - Over 95% of stablecoins are pegged to the US dollar, with over 80% of transactions occurring outside the US, indicating a significant global expansion of the dollar through digital means [5][6]. - China's passive avoidance of virtual currencies could lead to a loss of influence in the emerging global financial order, necessitating an active embrace of digital currencies and related innovations [6][8]. Group 3: Regulatory Developments - Recent legislative actions in Hong Kong, including the passage of the Stablecoin Ordinance and the release of the Hong Kong Digital Asset Development Policy Declaration 2.0, aim to position Hong Kong as a leading hub for digital assets and Web3 innovation [9]. Group 4: Industry Dynamics - The financial industry must adapt to avoid obsolescence, as traditional models face disruption from Web 3.0 technologies like blockchain and smart contracts [10][11]. - The transition from traditional fiat systems to blockchain-based stablecoins is expected to revolutionize the financial ecosystem within the next 5 to 10 years [11][12]. Group 5: Competitive Landscape - Huaxia Fund (Hong Kong) recognizes the urgency to innovate in a competitive landscape, where failure to adapt could lead to decline [13][21]. - The success of established players like BlackRock, which launched a tokenized fund that quickly grew to nearly $2.9 billion in assets, demonstrates the viability of this path [18][19]. Group 6: Strategic Intent - Huaxia Fund (Hong Kong) aims to capture the trillion-dollar offshore RMB asset management demand by establishing itself as a core player in the digital finance space [19][20]. - The company’s first-mover advantage in the tokenized fund market positions it favorably against potential competitors who may face significant entry barriers [20].

1. Report Industry Investment Rating No relevant content provided in the document. 2. Core Views of the Report - The trading of positive policy expectations in the stock and bond markets continues. In the stock index futures market, the trading of positive policy expectations persists, and it is recommended to hold long positions in IM before the Politburo meeting in July. In the stock index options market, it is advisable to mainly adopt a far - month covered call strategy for defense. In the treasury bond futures market, the yield curve continues to steepen, and in the medium - term, the odds of steepening the curve are relatively high [1][2][6][7][9]. 3. Summary by Relevant Catalogs 3.1 Market Views 3.1.1 Stock Index Futures - **View**: The trading of positive policy expectations continues. The basis of IF, IH, IC, and IM for the current month changed by 5.51 points, 7.44 points, 10.53 points, and 18.99 points respectively compared to the previous trading day; the inter - period spreads (current month - next month) changed by - 5.6 points, 0 points, - 5.2 points, and - 0.6 points respectively; and the positions changed by 7308 lots, 3275 lots, 188 lots, and 5351 lots respectively. - **Logic**: On Thursday, the Shanghai Composite Index strengthened with increased trading volume reaching 1.5 trillion yuan. After the State Council Executive Meeting, the "anti - involution" theme continued to play out, and commodity prices of related and indirect varieties rebounded. Financial funds focused more on the expectation of policy intensification. The expansion of domestic demand was also a policy focus, leading to speculation in the consumer sector. The market sentiment was positive, with offensive sectors leading the rise and defensive sectors leading the decline. Since the expectation of policy intensification is difficult to be falsified, it is recommended to hold long positions in IM. - **Operation Suggestion**: Allocate long positions in IM [6]. 3.1.2 Stock Index Options - **View**: Mainly adopt a far - month covered call strategy for defense. - **Logic**: The equity index oscillated and strengthened. The ChiNext Index rose 1.75%, and the CSI 1000 Index rose 1.14%. The trading volume of each option variety was relatively stable. The implied volatility of far - month options continued to decline. Although selling far - month call options showed floating losses, they still had relatively high absolute returns compared to the index increase. It can be inferred that the market mainly traded far - month call option selling. - **Operation Suggestion**: Adopt a covered call strategy [7]. 3.1.3 Treasury Bond Futures - **View**: The yield curve continues to steepen. The trading volume and positions of T, TF, TS, and TL for the current quarter changed, and the inter - period spreads, inter - variety spreads, and basis also had corresponding changes. The central bank conducted 4505 billion yuan of 7 - day reverse repurchases, with 900 billion yuan of 7 - day reverse repurchases maturing. - **Logic**: On Thursday, most treasury bond futures closed higher, with the 30 - year main contract down 0.02%, the 10 - year main contract up 0.02%, the 5 - year main contract up 0.02%, and the 2 - year main contract up 0.01%. The central bank's large - scale net injection of 3605 billion yuan in the open market was beneficial to the short - end of the bond market, while the rise of the equity market and high risk appetite were negative for the long - end of the bond market, causing the curve to steepen. In the short - term, the bond market may remain volatile. After the tax period, the loosening of the capital side will support the short - end, while the long - end may be cautious due to improved risk appetite and government bond supply. The Politburo meeting at the end of the month may also affect the long - end. - **Operation Suggestion**: Trend strategy: Maintain a volatile outlook. Hedging strategy: Pay attention to short - side hedging at low basis levels. Basis strategy: Appropriately pay attention to the widening of the basis. Curve strategy: The odds of steepening the curve are higher in the medium - term [7][8][9]. 3.2 Economic Calendar - China's export amount year - on - year in June was 5.8% (previous value 4.8%, forecast 3.21%); new RMB loans in June were 22400 billion yuan (previous value 6200 billion yuan, forecast 18447.29 billion yuan); industrial added value year - on - year in June was 6.8% (previous value 5.8%, forecast 5.49%). The US CPI seasonally adjusted year - on - year in June was 2.7% (previous value 2.4%, forecast 2.7%) [10]. 3.3 Important Information and News Tracking - **Tariffs**: US President Trump said on July 16 that the US might implement the tariff rate on Japan as previously stated in the letter and might soon reach a trade agreement with India. The US plans to impose a 25% tariff on Japanese imports starting from August 1. - **Digital Currency Products**: On July 17, Huaxia Fund (Hong Kong) announced the establishment of two tokenized money market funds denominated in US dollars and RMB respectively. The Huaxia RMB Digital Currency Fund is the world's first RMB - tokenized fund. - **Brokerage Technology Application**: The Securities Association of China launched a special survey on the information technology work of brokerage branches to promote the standardization and efficiency improvement of information technology construction and management in branches. - **EU Budget**: The European Commission announced a new budget proposal from 2028 to 2034, with a total amount of 2 trillion euros, a significant increase compared to the current 1.21 trillion euros. Most of the funds will come from EU member states, and the European Commission proposed several fundraising plans, which have been questioned by multiple member states [10][11][12].

Group 1 - The first RMB tokenized fund has been established by Huaxia Fund (Hong Kong), marking a significant development in the financial market [1] - The tokenized funds, including the Huaxia USD Digital Currency Fund and the Huaxia RMB Digital Currency Fund, are backed by traditional assets such as bonds and money market instruments [1] - Tokenized funds differ from traditional funds in ownership structure, utilizing blockchain technology for real-time verification and allowing redemption through compliant virtual asset trading platforms [1] Group 2 - The China Industrial Internet Research Institute held a seminar on stablecoins and industrial digital assets, discussing regulatory frameworks and the integration of real-world assets with industrial internet [2] - The seminar covered the development and regulatory policies of stablecoins, their technological characteristics, and their impact on payment systems [2] - The institute proposed leveraging Hong Kong's regulations to build a bridge between international digital currencies and the digital RMB [2] Group 3 - The U.S. House of Representatives passed a procedural vote on a cryptocurrency bill, allowing it to move forward for debate [3] - The vote lasted over eight hours, setting a record for the longest electronic voting session since the system's implementation [3] Group 4 - The Ministry of Industry and Information Technology emphasized accelerating the large-scale application of RISC-V technology, with China contributing over half of the global shipments in 2024 [4] - RISC-V technology has seen breakthroughs in high-performance computing, artificial intelligence, servers, and automotive electronics [4] Group 5 - The Vice Governor of Hubei Province highlighted the importance of promoting high-quality development in the laser industry, focusing on supply-demand matching and optimizing the industrial ecosystem [5] Group 6 - The release of the Kimi K2 AI model in China has been compared to a significant moment in AI development, showcasing impressive performance in programming and writing tasks [6] Group 7 - NAND Flash prices are expected to rise in Q3, with products under 512Gb projected to increase by over 15%, while higher capacity products will see a rise of 5% to 10% [8] - The price increase is attributed to ongoing production cuts by major manufacturers like Micron and SanDisk, leading to a tightening supply [8] Group 8 - Major global companies are actively pursuing the integration of RISC-V technology with AI, with NVIDIA expected to ship over 1 billion RISC-V processors in 2024 [9] - Companies like VeriSilicon and Ahead Computing are developing solutions and securing funding to advance RISC-V applications in AI and cloud computing [9] Group 9 - NVIDIA's CEO highlighted the next wave of artificial intelligence as "Physical AI," emphasizing the potential of AI to replace traditional coding methods with algorithmic learning [10] Group 10 - Guangdong Province is working on a new model for real estate development, focusing on green and low-carbon urban transformation in line with national urban modernization goals [11]

Group 1 - The unemployment rate for urban youth aged 16-24 in June was 14.5%, a decrease of 0.4 percentage points from the previous month, marking four consecutive months of decline [2] - Foreign institutions have collectively raised China's GDP growth forecast for 2025, with Morgan Stanley increasing its prediction from 4.5% to 4.8%, Goldman Sachs from 4.6% to 4.7%, and UBS from 4% to 4.7% [2] - The average disposable income for residents in 31 provinces in the first half of 2025 showed that 11 provinces exceeded 20,000 yuan, with Shanghai leading at 46,805 yuan [4] Group 2 - The U.S. House of Representatives passed the "Genius Act" aimed at significant legislative reform for cryptocurrency regulation, which is expected to be signed into law by President Trump [3] - The "Clarity Act," which aims to establish a broader regulatory framework for digital assets, was also passed by the House and will be reviewed by the Senate [3] Group 3 - The 25th China International Investment Trade Fair will be held in Xiamen from September 8 to 11, 2025, focusing on expanding two-way investment and promoting global development [5] - The National Intellectual Property Administration reported that the average review period for invention patents has been reduced to 15.5 months, and the total annual import and export of intellectual property fees increased from 319.44 billion yuan in 2020 to 398.71 billion yuan in 2024, with an annual growth rate of 5.7% [5] Group 4 - The A-share market saw a rise in major indices, with the Shanghai Composite Index up 0.37% to 3,516.83 points, and the Shenzhen Component Index up 1.43% [6] - Hong Kong's Hang Seng Index closed down 0.08% at 24,498.95 points, while the Hang Seng Tech Index rose 0.56% [6] - Insurance capital has conducted over 9,800 investigations into A-share listed companies this year, focusing on high-dividend and technology growth sectors [6] Group 5 - South Korean investors are accelerating their allocation of assets in China, with trading volumes exceeding $5.4 billion in Hong Kong and A-shares this year [7] - The Beijing Stock Exchange plans to conduct internal testing for trading support and fixed income platforms on July 19 [7] Group 6 - TSMC reported a net profit of 398.3 billion New Taiwan dollars in Q2, a 61% year-on-year increase, driven by strong demand for AI chips [8] - The company forecasts a 30% increase in sales in USD terms for the year, up from a previous estimate of 25% [8] Group 7 - The Ministry of Finance and the State Taxation Administration announced a reduction in the consumption tax threshold for super-luxury cars to 900,000 yuan, effective July 20, 2025 [11] - The Ministry of Agriculture and Rural Affairs emphasized the importance of stabilizing pig production and implementing policies to ensure supply and price stability [11] Group 8 - The China Securities Association initiated a special survey on the information technology of brokerage branch institutions, focusing on operational infrastructure, technology applications, and data security practices [12]

Core Insights - 华夏基金 (Hong Kong) has launched its second batch of tokenized funds, including the 华夏美元数字货币基金 and 华夏人民币数字货币基金, with the latter being the world's first tokenized fund denominated in RMB [1][2] - The series of tokenized funds aims to provide long-term returns in line with current money market rates by investing in short-term deposits and high-quality money market instruments [4] - The global market for tokenized currency funds is projected to exceed $400 billion by 2030, driven by increasing institutional interest in digital assets [8] Group 1: Fund Characteristics - Tokenized funds utilize a "traditional + digital" dual distribution model, allowing investors to transact through both traditional channels and licensed virtual asset trading platforms (VATPs) [1][4] - Unlike traditional funds, tokenized funds exist as blockchain digital tokens, enabling real-time verification of ownership and high transparency as all transactions and holdings are permanently recorded on-chain [4][5] - The operational infrastructure of tokenized funds is based on blockchain technology, reducing intermediaries and enhancing efficiency compared to traditional funds that rely on centralized systems [4] Group 2: Market Trends and Predictions - The demand for compliant on-chain yield products is growing, particularly among cryptocurrency investors, as regulated on-chain funds and central bank digital currencies (CBDCs) become more prevalent [8][9] - The total value of tokenized non-liquid assets is expected to reach $16 trillion by 2030, indicating a significant shift towards asset tokenization in the financial sector [8] - The recent approval of the "Stablecoin Bill" in Hong Kong is expected to facilitate the entry of stablecoins into the market, further enhancing the tokenized financial ecosystem [9]

Group 1 - The U.S. House of Representatives has enough votes to advance cryptocurrency legislation, with ongoing voting this week referred to as "Crypto Week" [1][3] - Key cryptocurrency bills include the GENIUS Act for stablecoin regulation, the CLARITY Act to clarify SEC and CFTC jurisdiction, and the CBDC Anti-Surveillance State Act to prohibit the Fed from issuing CBDCs [3][4] - Despite initial setbacks, including a failed vote of 196 to 223, the situation reversed with key Republican members agreeing to support the legislation after negotiations led by President Trump [4][5] Group 2 - Following the news of legislative progress, stocks related to cryptocurrency surged, with Blue Ocean Interactive rising over 45% and New Fire Technology Holdings increasing nearly 8% [2][6] - Hong Kong is actively developing stablecoin-related products, establishing a dual regulatory framework that connects USD stablecoins to international markets and HKD stablecoins to mainland China, enhancing the financial attributes of the HKD and supporting RMB internationalization [7] - The rapid development of the stablecoin market in Hong Kong is expected to increase the market share of non-USD stablecoins and may lead to the establishment of a unified international regulatory system [7][8]

Group 1 - The regulatory framework for stablecoins is becoming clearer, with the Hong Kong Legislative Council passing the Stablecoin Bill, effective from August 1, establishing a licensing system and 1:1 high liquidity asset reserves as core components [2][3] - Cathay Financial International has received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services, allowing direct trading of Bitcoin and stablecoins on its platform [2][3] - The global issuance scale of stablecoins has exceeded $235 billion as of May 2025, indicating significant market growth [2] Group 2 - Several public fund subsidiaries in Hong Kong are actively preparing for the stablecoin ecosystem, participating in sandbox projects led by the Hong Kong government, including stablecoin issuance, payment, asset integration, and fund subscription and redemption [3][4] - Huaxia Fund (Hong Kong) has been involved in multiple sandbox projects and is collaborating with major financial institutions to test end-to-end processes for tokenized fund transactions and cash management solutions [3][4] - The introduction of stablecoin applications in fund management could lead to a noticeable increase in fund management scale, as stated by Huaxia Fund's digital asset management head [4] Group 3 - In April 2024, six virtual asset spot ETFs were officially listed in the Hong Kong market, with major fund companies like Bosera Fund and Huaxia Fund launching Bitcoin and Ethereum ETFs that allow direct investment in these cryptocurrencies [5][6] - Huaxia Fund (Hong Kong) has been proactive in the digital asset space, launching Asia's first spot crypto asset ETFs and a tokenized currency fund, aiming to expand its tokenized fund product series [6][7] - Fund companies are rapidly building teams to capture talent in the virtual asset sector, with job postings for product managers requiring experience in virtual assets, fintech, and blockchain [7] Group 4 - Huaxia Fund (Hong Kong) has established a digital asset department to manage the lifecycle of virtual asset products and is focused on integrating traditional financial products with virtual assets and stablecoins [7] - The company plans to continue launching more tokenized fund products and explore the use of digital currencies for settlement to enhance transaction efficiency in the digital financial ecosystem in Hong Kong [7]