Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months compared to the benchmark index [18]. Core Insights - The "Policy Declaration 2.0" aims to establish Hong Kong as a global innovation center for digital assets, building on the initiatives from the first declaration in October 2022 [2]. - The declaration introduces the "LEAP" framework, focusing on optimizing legal and regulatory frameworks, expanding tokenized product varieties, promoting application scenarios and cross-sector collaboration, and developing talent and partnerships [2][3][4]. - The framework emphasizes the establishment of a comprehensive regulatory framework for digital asset service providers, including trading platforms and custodians, with the Hong Kong Securities and Futures Commission as the main regulatory body [2]. - The declaration encourages the tokenization of a wider range of assets and financial instruments, including government bonds and traditional financial products, to stimulate innovation [2][4]. - The report highlights the importance of linking financial tools with the real economy, suggesting that the development of the RWA (Real World Asset) market in Hong Kong is a key focus area [4]. Summary by Sections Legal and Regulatory Optimization - Establish a unified regulatory framework for digital asset service providers, including trading platforms and custodians [2]. - The Hong Kong Securities and Futures Commission will oversee the licensing mechanism for digital asset service providers [2]. Expansion of Tokenized Products - Promote the tokenization of various assets and financial instruments, including government bonds and traditional financial products [2][4]. - Encourage innovative applications through projects like the HKMA's Ensemble project [2]. Application Scenarios and Cross-Sector Collaboration - Support the development of digital asset infrastructure and provide funding for impactful projects through initiatives like the Digital Port's blockchain pilot funding scheme [3]. Talent and Partnership Development - Invest in professional talent development and infrastructure to enhance the financial system's service capabilities abroad [4]. - Address the mismatch between trade and financial status in the context of Chinese enterprises going global [4]. Investment Recommendations - The report suggests tracking the progress of Hong Kong's Web 3.0 development and the entry of significant financial institutions into the digital asset ecosystem [6]. - Recommended stocks include Nanhua Futures, Ruida Futures, Tianfeng Securities, and Guangfa Securities for A-shares, and ZhongAn Online, Lianyi Technology for Hong Kong stocks [6].