Core Insights - Dmall Inc. has entered a strategic partnership with Circle, becoming one of the first retail payment network partners for Circle's Arc public testnet, marking a significant step in its Web3 strategy [1] - The collaboration aims to leverage Circle's expertise in blockchain, stablecoins, and real-world assets (RWA) to create a unique ecosystem that integrates retail, fintech, and Web3, establishing a competitive edge for long-term growth [1] Group 1: Web3 Strategy Development - Dmall's Web3 strategy, initiated in early 2025, has seen rapid implementation, including partnerships with HashKey Group for digital asset trading accounts and preparations for a stablecoin license in Hong Kong [2] - The company plans to invest approximately HKD 388 million in stablecoin and blockchain technology research and development, demonstrating its commitment to building a comprehensive framework for virtual asset trading and compliance [2] - Dmall has also signed a letter of intent for the potential acquisition of companies regulated under Hong Kong's Securities and Futures Ordinance, aiming to streamline compliance pathways for virtual asset trading and RWA [2] Group 2: Retail Ecosystem and RWA Innovation - Dmall's core advantage lies in its extensive retail ecosystem, serving over 500 medium to large retail enterprises across 10 countries, providing a natural testing ground for stablecoin payments and asset tokenization [3] - The partnership with Circle enhances technological capabilities, with the Arc testnet supporting USDC as a native token for transaction fees, offering sub-second transaction confirmation for future retail payment network deployment [3] Group 3: Industry Outlook and Regulatory Environment - The Hong Kong Stablecoin Regulation, effective August 2025, includes offshore RMB as a stablecoin anchor asset, facilitating the compliance of stablecoins and blockchain technology in real-world applications [4] - Dmall's proactive approach to compliance through license acquisitions and strategic partnerships positions it to lead in the blockchain application within retail scenarios, overcoming traditional approval bottlenecks [5] - The integration of AI retail solutions with blockchain technology aims to create a fully digitalized ecosystem, enhancing retail efficiency and customer experience [5] Group 4: Company Overview - Dmall Inc. is a leading player in China's retail digitalization sector, providing comprehensive solutions for omnichannel digital transformation, including online and offline transactions, member management, supply chain optimization, and efficient payment processing [6] - Circle Internet Group Inc. is a global leader in blockchain fintech, known for its USDC stablecoin, which is widely used for cross-border payments and asset digitization, and aims to connect the crypto economy with the real economy [7]

Group 1: Recent Market Summary - The US-China negotiations have become more complex with the involvement of more aggressive officials, leading to increased uncertainty in trade discussions [7] - Trump's pressure on tariffs has heightened market uncertainty, with potential higher tariffs impacting various industries, particularly automotive and consumer electronics [7] - Social unrest in California due to immigration enforcement actions has disrupted local economies and increased national economic uncertainty [7] - The Middle East situation remains tense, particularly regarding Iran's nuclear negotiations, which could lead to increased geopolitical risks and market volatility [7] Group 2: Market Concerns - The trend of de-dollarization is observed, with a shift of capital from dollar assets to non-dollar markets, indirectly benefiting Hong Kong stocks [13] - Hong Kong's official foreign exchange reserves increased to $431 billion by the end of May 2025, reflecting a positive capital flow into the market [13] Group 3: US Macro Insights - The University of Michigan's consumer sentiment index improved to 60.5 in June, indicating a recovery in consumer confidence and expectations regarding the economy and job market [18] - The decline in inflation expectations to 5.1% for the next year suggests a more optimistic outlook for consumers [18] Group 4: Focus on Federal Reserve Meeting - The upcoming Federal Reserve meeting is anticipated to maintain interest rates, with market focus on future rate cut signals and economic forecasts [20] - The geopolitical tensions in the Middle East add uncertainty to the Fed's outlook, influencing market expectations for interest rate policies [20] Group 5: Stablecoins and Digital Assets - Circle's IPO has reignited interest in stablecoins, with USDC being a prominent player alongside USDT, which holds a significant market share [22] - Stablecoins are seen as a means to enhance the dollar's position in the global financial system, with potential market capitalization reaching $2 trillion [28] - Regulatory frameworks for stablecoins are being established globally, with the EU and Hong Kong implementing clear guidelines for issuance and reserves [28]