Group 1 - The three major indices continued to show strength, with the water conservancy and western infrastructure sectors leading the gains, while the fintech sector experienced a pullback [1] - The financial technology ETF Huaxia (516100) saw a decline of 1.37%, with mixed performance among its holdings; however, it has attracted a net subscription of 640 million over the past 20 days, reaching a total scale of 973 million, a record high since its inception [1] - The signing of the "GENIUS Act" by U.S. President Trump marks the formal establishment of a regulatory framework for digital stablecoins in the U.S., indicating a shift towards compliance and broader application in payment scenarios [1] Group 2 - The financial technology ETF Huaxia (516100) closely tracks the CSI Financial Technology Theme Index, which includes leading stocks in software development, internet finance, and the digital currency industry, with a stablecoin content of 23.43%, the highest among all market indices [2]

Macro Insights - Stablecoins are not absolutely stable in value; they are subject to technical de-pegging risks and fluctuations in the underlying assets [1] - Not all fiat currencies can support the issuance of stablecoins; the development of stablecoins depends on the acceptance and trust in the underlying fiat currency [1] - The rapid development of USD stablecoins does not weaken the credibility of the USD; instead, it enhances the USD's role and functionality [1] - USD stablecoins provide limited relief to the US short-term debt market, with the Federal Reserve remaining the primary influencer of the overall debt market [2] - The emergence of USD stablecoins does not significantly increase the supply of USD; the Federal Reserve retains control over total USD liquidity [2] - Stablecoins support the RWA market primarily at the transaction level, with the development of RWA ultimately dependent on the quality of underlying assets [2] Market Strategy - The Chinese stock market is expected to continue its upward trend despite recent adjustments, driven by emerging opportunities in new technologies and consumption [4] - The potential for a trend of USD depreciation is increasing, which may benefit Chinese assets, particularly in the context of capital flow and asset pricing [5] - The focus on AI trends in the technology sector is emphasized, alongside recommendations for cyclical industries and high-dividend financial stocks [6] AH Premium Analysis - The historical AH premium has been trending downward, influenced by differences in market structure, liquidity, and industry concentration between A-shares and H-shares [8] - Recent changes indicate a narrowing of the AH premium, with some H-shares trading at a premium compared to their A-share counterparts [9] Commodity Insights - The lithium and cobalt sectors are under scrutiny, with current market conditions showing weak demand and price pressures [11][12] - The cobalt market is experiencing a downturn, with reduced purchasing activity and potential policy changes in the Democratic Republic of Congo that could impact prices [13]