Core Viewpoint - Stablecoins are reshaping the underlying logic of cross-border payments and asset transactions, serving as a "digital anchor" that connects traditional finance with digital assets, particularly in Hong Kong's strategy to become a global innovation center in the digital asset space [1] Regulatory Framework Development - Since 2022, Hong Kong has initiated a systematic exploration of stablecoin regulation, moving from legislative preparation to sandbox trials, and establishing a regulatory framework focused on the core value of "trust" [1] - The Hong Kong Monetary Authority (HKMA) recognized the dual impact of stablecoins on financial stability and innovation, aiming to balance these aspects in its regulatory approach [2] - In December 2023, HKMA proposed that issuers of fiat-backed stablecoins must apply for a license, with only licensed issuers allowed to sell to retail investors [3] Legislative Progress - 2024 is a pivotal year for Hong Kong's stablecoin regulation, with the HKMA and the Financial Services and the Treasury Bureau set to release a consultation report that establishes design principles for the regulatory framework [4] - The consultation received 108 submissions, indicating broad support for introducing regulatory measures for fiat stablecoin issuers to manage potential monetary and financial stability risks [4] - The legislative process accelerated in December 2024 with the publication of the Stablecoin Regulation Draft, which outlines licensing requirements, reserve asset standards, and risk protection mechanisms [6] Implementation and Market Response - The Stablecoin Regulation was officially passed by the Hong Kong Legislative Council on May 21, 2025, marking the introduction of a licensing system for fiat stablecoin issuers [8] - The HKMA has maintained a cautious stance amidst market enthusiasm, emphasizing that stablecoins are payment tools without appreciation potential, and warning against speculative behavior [9][10] - Initial licensing will be limited, with expectations that only a few licenses will be granted, reflecting a stringent regulatory environment [11]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies. Core Insights - The Hong Kong Stablecoin Ordinance will officially take effect on August 1, with the Hong Kong Monetary Authority (HKMA) releasing relevant guidelines and documents [20][22] - The HKMA anticipates issuing the first batch of stablecoin licenses as early as next year, with no limit on the types of currencies or the scale of issuance [27][28] - Continuous improvements in Hong Kong's virtual asset regulatory framework are expected to stimulate market demand and expand application scenarios for stablecoins [24][25] Summary by Sections 1. Regulatory Framework - The HKMA has established a regulatory regime for stablecoin issuers, which includes guidelines on reserve asset management, compliance for issuance and redemption, and financial standards [23][24] - The guidelines emphasize risk management, compliance, information disclosure, and consumer protection [23][24] 2. Sandbox Participants and Use Cases - As of July 2024, three institutions have been announced as participants in the HKMA's stablecoin issuer "sandbox": JD Coinlink Technology, RD InnoTech, and a joint venture involving Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications [8][28] - Use cases for these participants include cross-border payments, investment trading, and virtual asset transactions [28] 3. Licensing and Competitive Advantage - Companies that obtain early mover advantages in licensing, particularly for stablecoin issuers and virtual asset trading platforms (VATP), are likely to become major beneficiaries in the industry [25][15] - The report highlights that online brokers with a large customer base and VATP licenses, such as Futu, will have competitive advantages [25][15] 4. Market Demand and Future Outlook - The official launch of Hong Kong dollar-pegged stablecoins is expected to facilitate more efficient cross-border fund flows and extend the application of stablecoins beyond the cryptocurrency ecosystem [24][25] - The report suggests that ongoing regulatory enhancements will activate market demand for virtual assets and broaden their application scenarios [24][25]

Core Viewpoint - Hong Kong's "Stablecoin Regulation" will officially take effect on August 1, with the issuance of stablecoin licenses imminent, establishing a robust regulatory framework for stablecoin issuers and enhancing market credibility [1][3]. Regulatory Framework - The Hong Kong Monetary Authority (HKMA) has held technical briefings and released documents regarding the stablecoin issuer regulatory system, which will be implemented on August 1, 2025 [1][3]. - The regulatory guidelines include the "Licensed Stablecoin Issuer Regulatory Guidelines" and "Anti-Money Laundering and Counter-Terrorist Financing Guidelines" [3]. - The HKMA encourages interested institutions to contact them by August 31, 2025, to understand regulatory expectations and improve application efficiency [3]. License Issuance - As of July 29, no licenses have been issued, and the HKMA plans to publish the list of licensed stablecoin issuers on its website [4]. - The initial phase will see only a few licenses granted, with a focus on specific use cases such as cross-border trade [5][7]. Market Participants - Several institutions, including Ant Group and JD.com, are predicted to be among the first to receive licenses due to their blockchain technology expertise and application scenarios [2]. - The HKMA has received interest from dozens of institutions, but many lack concrete application scenarios and risk management capabilities [6]. Sandbox Testing - The HKMA will launch a "Stablecoin Issuer Sandbox" in March 2024 to provide a controlled testing environment for institutions planning to issue stablecoins [6]. - The first batch of sandbox participants includes five institutions, including two blockchain technology companies [6]. Virtual Asset Regulation - Hong Kong is actively building a global virtual asset center and exploring the application of offshore RMB (CNH) stablecoins [8]. - The Securities and Futures Commission (SFC) has released a regulatory roadmap for virtual assets, aiming to balance innovation and risk management [8]. Brokerage Developments - Chinese brokerage firms are rapidly entering the virtual asset trading service sector, with several obtaining relevant licenses from the SFC [9]. - The approval of these licenses is seen as a significant signal of Chinese banks entering the virtual asset market [9].

Core Viewpoint - The implementation of Hong Kong's "Stablecoin Regulation" on August 1 marks a significant milestone, leading to increased market interest and notable performance in related stocks, including several "10x bull stocks" [1][2]. Group 1: Market Performance - Since June, stablecoin-related stocks have surged, with companies like China San San Media and Jiaming Technology achieving remarkable gains, including a 72.73% increase in China San San Media's stock on July 16, and a cumulative increase of 17.70 times this year [2]. - Jiaming Technology has also seen its stock price double since June, with a cumulative increase of 16.12 times this year [2]. - Other stocks such as Yao Cai Securities, OK Blockchain, Yunfeng Financial, and others have reported cumulative increases exceeding 100% this year [3]. Group 2: Strategic Moves and Financing - Companies are actively preparing for stablecoin issuance, with China San San Media announcing plans to apply for a stablecoin license and utilizing funds from new share placements [2]. - Fourth Paradigm announced a placement of 25.9 million shares to raise approximately HKD 1.308 billion, aiming to develop a "stablecoin intelligent risk control & compliance solution" [5]. - ZHONGAN Online completed a share placement to raise HKD 3.92 billion, with 30% allocated for fintech innovation, and is involved in providing banking services for stablecoin issuers [6]. Group 3: Regulatory Environment - The Hong Kong Monetary Authority (HKMA) is set to release a summary of the "stablecoin issuer licensing system," which will detail the application process for licenses [7]. - The regulatory framework is expected to clarify compliance requirements, which will be crucial for the stablecoin industry's development and may enhance the internationalization of the Renminbi [1][7].

Core Viewpoint - The article discusses the regulatory concerns surrounding the hype of stablecoins in the Hong Kong market, emphasizing the need for a more cautious approach to their development and issuance [2][4]. Group 1: Regulatory Concerns - The Hong Kong Monetary Authority (HKMA) has expressed worries about the excessive conceptualization and market exuberance surrounding stablecoins, indicating a bubble-like trend [4]. - HKMA's president, Yu Weiwen, highlighted that despite initial plans to issue only a few stablecoin licenses, numerous institutions have approached the HKMA for potential licensing [8][9]. - Yu noted that many institutions are still in the conceptual phase and lack practical application scenarios, which raises concerns about their ability to manage financial risks effectively [10]. Group 2: Market Reactions - Several listed companies in Hong Kong have seen significant stock price increases due to the stablecoin concept, with the Oriental Fortune Hong Kong Stablecoin Index rising by 2.49% on July 23 [2]. - Notable stock movements include Puxing Energy, which surged by 141.38% on July 10, and Delin Holdings, which experienced a price increase of over 70% on the same day due to announcements related to stablecoin projects [5][6]. - The article mentions that many A-share companies have issued clarifications stating they do not engage in stablecoin activities after being classified as stablecoin concept stocks [6]. Group 3: Future Developments - The HKMA plans to release a summary of the stablecoin issuer licensing system next week, with the licensing process set to begin on August 1 [10]. - The article indicates that only a few institutions have officially announced their intentions to apply for stablecoin licenses, including JD Coin Chain Technology and a consortium involving Standard Chartered Bank [10].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) is expressing concerns over the excessive hype surrounding stablecoins, indicating a potential bubble in the market as companies claim intentions to explore stablecoin businesses, leading to significant stock price increases [1][2][7]. Group 1: Market Reactions - Several listed companies in Hong Kong have seen substantial stock price increases due to the stablecoin concept, with the Hong Kong stablecoin index rising by 2.49% on July 23 [1]. - Notable stock performances include Puxing Energy, which surged by 141.38% on July 10, and subsequently recorded a cumulative increase of 275.86% over five trading days [3]. - Delin Holdings also experienced a significant rise, with a 70% increase on July 10, closing up 18.40% after announcing progress in a tokenization project [3][4]. Group 2: Regulatory Insights - HKMA has clarified that only a limited number of stablecoin licenses will be issued initially, emphasizing the need for real application scenarios for stablecoin issuers [2][7]. - Despite the regulatory stance, dozens of institutions have approached HKMA, with some expressing clear intentions to apply for stablecoin licenses [5][6]. - HKMA's president highlighted that many institutions remain in the conceptual phase without practical application plans, while others lack the necessary risk management capabilities [8]. Group 3: Future Developments - The "Stablecoin Regulation" in Hong Kong is set to take effect on August 1, with the licensing process about to commence [8]. - HKMA plans to release a summary of the stablecoin issuer licensing system, addressing the application process and related rumors in the market [8].

Investment Rating - The report maintains an optimistic outlook on the Hong Kong stock market, particularly regarding new IPOs and sectors such as stablecoins, new consumption, and innovative pharmaceuticals [3][10]. Core Insights - The report highlights new investment paths following the implementation of stablecoin legislation, emphasizing the positive sentiment towards Hong Kong and U.S. Chinese stocks, with a notable shift towards new concepts and small-cap stocks [3][10]. - There is a sustained bullish view on virtual assets, including stablecoins, with recommendations for traditional virtual asset companies and infrastructure assets related to blockchain technology [3][10]. - The report identifies potential risks associated with overseas Chinese assets, particularly concerning U.S.-China tariff issues, and suggests monitoring the progress of global tariff negotiations [3][10]. Industry Situation Tracking Education - The Chinese education index increased by 2.10% from July 14 to July 18, outperforming the CSI 300 and SSE 50 indices, while underperforming the Hang Seng Tech Index [11]. - Notable stock performances include a 25.09% increase for Fenbi and a 14.37% increase for Dongfang Zhenxuan, while New Oriental saw a decline of 3.39% [11][19]. Luxury Goods - The luxury goods sector faced slight pressure, with a 6% year-on-year decline in Burberry's sales revenue for Q1 of FY2026, although the decline was less severe than previous periods [25]. - The report notes that the jewelry segment remains a growth driver, with Richemont's jewelry sales increasing by 11% year-on-year [31]. Coffee and Tea Beverages - The coffee sector maintains high growth, while the tea beverage sector shows signs of recovery, benefiting from summer demand and delivery subsidies [5][28]. E-commerce - The e-commerce sector is experiencing slight pressure, with a slowdown in overall growth and intensified competition among platforms [5][34]. - The report highlights a 742.95 billion yuan online retail sales figure for the first half of 2025, reflecting an 8.5% year-on-year growth [37]. Streaming Platforms - The streaming media index rose by 7.8%, outperforming both the Hang Seng Index and the Hang Seng Tech Index [38]. - Notable stock performances include a 12.08% increase for NetEase Cloud Music and an 11.37% increase for Tencent Music [38]. Virtual Assets & Internet Brokers - The global cryptocurrency market capitalization reached $392.19 billion, with Bitcoin and Ethereum prices increasing by 0.4% and 19.9%, respectively [40][43]. - The report emphasizes the positive trend in virtual assets following the passage of the GENIUS Act in the U.S., which establishes a regulatory framework for stablecoins [49].

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The global virtual asset licensing system has essentially taken shape, with a systematic regional regulatory framework established [3] - Different regions exhibit variations in virtual asset licensing, reflecting distinct regulatory logics and strategic focuses [3] - Three major collaborative trends are emerging: local currency anchoring, asset custody, and anti-money laundering compliance [3] - Licensed operators and service providers are expected to become mainstream, with regulated trading platforms and stablecoin assets presenting lower risks [3] - The licensing will serve as a significant valuation support factor, with leading companies holding core licenses enjoying first-mover advantages and competitive moats [3] Summary by Sections 01 Global Virtual Asset Licensing System - The licensing framework in Hong Kong includes a dual regulatory structure for stablecoin issuers and virtual asset service providers (VASP) [8][9] - Hong Kong's VASP license requires compliance with strict operational and auditing standards, enhancing market transparency and investor safety [10] - Singapore's regulatory approach emphasizes innovation while ensuring market safety through a clear regulatory framework [11][12] - The European MiCA framework provides comprehensive regulations for crypto assets, categorizing them into electronic money tokens, asset-referenced tokens, and utility tokens [13][14] - The U.S. regulatory landscape is characterized by a complex multi-layered system involving federal and state-level oversight [17][18] 02 Differences and Collaborations in Regional Licensing - Hong Kong's licensing system is more inclusive for retail investors compared to Singapore's cautious approach [26] - The regulatory frameworks in Hong Kong and Europe aim to provide clear guidelines to foster innovation while ensuring compliance [26] - The U.S. regulatory environment is fragmented, requiring compliance with both federal and state regulations [26] 03 Investment Recommendations - Beneficial targets include licensed firms such as Zhongyou Capital, Bank of China Hong Kong, and Coinbase Global [4] - The report highlights the importance of holding licenses as a key factor for valuation and competitive advantage in the virtual asset industry [3][4]

Group 1 - The semiconductor and domestic computing power sectors are benefiting from favorable conditions for IM and IC contracts, indicating a strong short-term trading opportunity [1][4] - The stock index has shown strong performance, with the Shanghai Composite Index reaching a high of 3555.22 points, supported by multiple factors, including the recent approval of the "Stablecoin Regulation" in Hong Kong [1][2] - The "anti-involution" sector is becoming active, with the central government's emphasis on promoting product quality and orderly competition, positively impacting various industries [2] Group 2 - The approval of the H20 chip sales to China by the U.S. is expected to alleviate previous supply restrictions, potentially leading to a recovery in the AI sector as demand increases [4] - The long-term outlook for the stock index remains optimistic, despite uncertainties surrounding U.S.-China tariffs, with expectations of improved market sentiment and potential fiscal policy support in the fall [3][4] - The stablecoin market is anticipated to grow, with the U.S. pushing for legislation that could enhance the dominance of the U.S. dollar, while the development of the RMB stablecoin is seen as inevitable, starting with trials in Hong Kong [2]

Summary of Conference Call Industry or Company Involved - The discussion primarily revolves around the blockchain industry, specifically focusing on Ant Group and its ecosystem, as well as the broader virtual asset landscape. Core Points and Arguments 1. **Ant Group's Blockchain Position**: Ant Group is highlighted as a leading player in the blockchain space, with significant market potential and development trends. The focus is on its capabilities in transaction management and material management within the blockchain ecosystem [1][2][4]. 2. **Ecosystem Strength**: The strength of Ant Group's ecosystem is emphasized, particularly its international collaborations and partnerships, which enhance its blockchain capabilities [2][5]. 3. **Traditional Internet Companies**: There is a mention of traditional internet giants in China that are quietly entering the virtual asset space, leveraging their cross-border payment capabilities and consumer-facing scenarios [6][7]. 4. **Regulatory Environment**: The evolving regulatory landscape in Hong Kong is noted, with potential for traditional cryptocurrency firms to re-enter the financial sector and possibly undergo IPOs [8][9][11]. 5. **Focus on Brokerages**: Companies like Futu and Tiger Brokers are identified as key players in the market, with their ability to obtain licenses globally being a significant advantage [12][15]. 6. **Web 3.0 Integration**: The discussion touches on the integration of blockchain technology within the Web 3.0 framework, highlighting the competitive edge of internet brokerages over traditional firms [13][14]. 7. **Market Dynamics**: The call suggests that the current market dynamics favor internet brokerages due to their established user base and trading capabilities, which are crucial in the evolving landscape of virtual assets [15][16]. Other Important but Possibly Overlooked Content 1. **Material Management Importance**: The significance of material management in Ant Group's overseas operations is underscored, indicating its critical role in the blockchain ecosystem [4][5]. 2. **Potential Collaborations**: There is an expectation of new collaborations emerging within the traditional internet sector and the cryptocurrency space, which could lead to innovative developments [6][11]. 3. **Licensing Developments**: The upcoming changes in licensing regulations are anticipated to create opportunities for various companies to enhance their operational capabilities in the blockchain sector [16][17].