Report Industry Investment Rating No relevant content provided. Core Viewpoints - A-share mid - term dividends are increasing, and the stock index has rebounded. The spot market shows that the three major A - share indexes opened lower and closed higher, with the Shanghai Composite Index rising 1.04% to 3766.21 points, reaching a ten - year high, and the ChiNext Index rising 0.23%. The number of listed companies announcing mid - term dividend plans has significantly increased, with over 140 companies announcing plans and the total proposed dividend amount exceeding 100 billion yuan. In the overseas market, the three major US stock indexes closed mixed [1]. - In the futures market, the basis of stock index futures has significantly narrowed, and both the trading volume and open interest of stock index futures have increased [2]. - In recent days, the A - share market has shown a pattern of low - opening reversals and high - opening pullbacks. With the continuous increase in market expectations, washing behavior is mostly carried out through intensified intraday fluctuations. The technology sector has shown catalytic effects, the semiconductor market has exploded, and foreign capital inflows have also boosted the consumer sector. The market has shown obvious high - low switching characteristics, and attention should be paid to the risks after the low - level weighted stocks make up for losses [3]. Summary by Directory Market Analysis - **Domestic Focus**: President Xi Jinping emphasized that Tibet should continue to focus on stability, development, ecology, and border strengthening. Major projects such as the Yarlung Zangbo River hydropower project and the Sichuan - Tibet Railway should be promoted in an orderly manner [1]. - **Overseas Focus**: The minutes of the Fed's July monetary policy meeting showed that most officials thought it appropriate to keep the benchmark interest rate unchanged, and only two officials advocated for a rate cut. The use of payment - type stablecoins may accelerate expansion, which could increase the demand for reserve assets, including treasury bonds [1]. - **Stock Market Performance**: In the A - share spot market, most sector indexes were up, with beauty care, petroleum and petrochemicals, electronics, and the automotive industry leading the gains, while only the pharmaceutical and biological industry closed slightly lower. The trading volume of the Shanghai and Shenzhen stock markets on that day was 2.4 trillion yuan. In the overseas market, the Dow Jones Industrial Average rose 0.04% to 44938.31 points, and the Nasdaq Composite Index fell 0.67% to 21172.86 points [1]. - **Futures Market Performance**: In the futures market, the basis of stock index futures has significantly narrowed, and both the trading volume and open interest have increased [2]. Strategy - The A - share market has shown a pattern of low - opening reversals and high - opening pullbacks. With the continuous increase in market expectations, washing behavior is mostly carried out through intensified intraday fluctuations. The technology sector has shown catalytic effects, the semiconductor market has exploded, and foreign capital inflows have also boosted the consumer sector. The market has shown obvious high - low switching characteristics, and attention should be paid to the risks after the low - level weighted stocks make up for losses [3]. Charts - **Macroeconomic Charts**: Include the relationship between the US dollar index and A - share trends, the relationship between US treasury bond yields and A - share trends, the relationship between the RMB exchange rate and A - share trends, and the relationship between US treasury bond yields and A - share style trends [6][8][10]. - **Spot Market Tracking Charts**: Show the daily performance of major domestic stock indexes, including the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, CSI 300 Index, SSE 50 Index, CSI 500 Index, and CSI 1000 Index. Also include the trading volume of the Shanghai and Shenzhen stock markets and the margin trading balance [6][13][14]. - **Stock Index Futures Tracking Charts**: Include the open interest and trading volume of IF, IH, IC, and IM contracts, the latest open interest ratios of these contracts, the net open interest of foreign capital in these contracts, the basis of these contracts, and the inter - delivery spread of these contracts [6][15][36].

Core Viewpoint - The signing of the "Genius Act" marks the establishment of a clear legal framework for stablecoins in the U.S., ending their previous ambiguous legal status and reshaping the industry landscape [1][4][26] Group 1: Definition and Regulatory Framework - The "Genius Act" defines compliant stablecoins as "payment stablecoins," emphasizing their role as payment or settlement tools rather than investment products [4][5] - This definition excludes stablecoins from being classified as legal tender, bank deposits, financial securities, or commodities, thus simplifying the regulatory path for issuers [4][5] - The act signals that compliant stablecoins will be recognized as legitimate financial payment tools, moving away from being seen as risk assets [4][5] Group 2: Market Dynamics and Participants - The act creates a new power structure where traditional financial institutions, particularly banks, will dominate the issuance of stablecoins [9][10] - Only "insured depository institutions" and "regulated non-bank entities" can issue stablecoins, favoring established banks like JPMorgan, Goldman Sachs, and Bank of America [9][10] - Non-financial giants like Amazon and Meta face significant barriers to entering the stablecoin market, as the act restricts issuance to companies primarily engaged in financial services [12][24] Group 3: Compliance and Cost Implications - The act imposes strict compliance requirements, including a 1:1 reserve mechanism and monthly audits, significantly increasing operational costs for stablecoin issuers [17][18] - The previous practices of leveraging reserves for additional returns will be curtailed, as only high-liquid assets like cash and short-term U.S. Treasury securities can be used [17][18] - Smaller firms may struggle to meet the new compliance standards, leading to a market dominated by larger institutions [13][18] Group 4: Opportunities for Web3 Infrastructure - The new regulatory environment presents significant opportunities for Web3 infrastructure providers, as banks seek to develop their own stablecoins [19][26] - Companies like Alchemy and Fireblocks are positioned to offer essential services to banks, potentially leading to a booming market for Web3 infrastructure, projected to reach $55 billion by 2033 [19][26] Group 5: Future of Existing Stablecoins - Tether's USDT faces compliance challenges under the new act, as it must secure regulatory approval to continue operating in the U.S. market [22][23] - The act mandates that stablecoin issuers must back their tokens with cash and short-term U.S. Treasury securities, which may be difficult for Tether to achieve given its current asset composition [23][24] - Algorithmic stablecoins are temporarily excluded from the regulatory framework, with further research required to assess their risks and potential uses [24][25]