Investment Rating - The report maintains a "Positive" investment rating for the software and services industry [7] Core Insights - Hong Kong's Financial Secretary, Paul Chan, announced in the 2026 Budget that a draft digital asset policy will be submitted within the year, establishing a licensing system for digital asset trading and custody service providers. This initiative is expected to accelerate the regulatory framework and infrastructure development for the digital asset industry in Hong Kong [2][4] - The report suggests focusing on technology suppliers with blockchain capabilities and entities related to digital assets as potential investment opportunities [2][10] Summary by Sections Event Description - The Hong Kong government plans to introduce a licensing system for digital asset service providers, aiming to enhance market liquidity and provide more products and services for professional investors while ensuring investor protection [4] Event Commentary - The report highlights that Hong Kong is progressively establishing a comprehensive regulatory and operational framework for digital assets, covering issuance, trading, settlement, custody, and taxation. The anticipated issuance of the first licenses and the launch of digital asset platforms are expected to integrate digital assets into mainstream financial infrastructure [10] - The report also notes that the recent policies from mainland China regarding Real World Assets (RWA) may lead to a more regulated development phase for the digital asset industry, with Hong Kong serving as a crucial gateway for digital asset expansion [10]

Group 1 - VITAKING has accumulated 57.6 tons of physical gold, covering over 200 gold mines globally, with a total asset value exceeding $20 billion [5] - The company aims to transform physical gold into verifiable and transferable digital assets, providing a new way for global investors to invest in gold safely, efficiently, and transparently [5] - The founder emphasized that while they deal with digital assets, the core of their business is about people and trust, highlighting the importance of human involvement in the asset management process [3] Group 2 - The company employs a dedicated team, referred to as "guardians of gold," who work in various roles, including engineers in mines, security personnel in vaults, compliance officers, and customer service representatives [2][3] - Each team member plays a crucial role in ensuring the purity and safety of the gold, contributing to the overall trustworthiness of VITAKING's operations [2] - The commitment of these individuals reflects the company's dedication to maintaining a reliable and trustworthy investment environment for its users [2]

Core Viewpoint - HASHKEY HLDGS has seen a significant stock price increase following its inclusion in the Hang Seng Composite Index, indicating positive market sentiment and potential for further investment opportunities [1] Group 1: Stock Performance - HASHKEY HLDGS experienced an intraday increase of over 5%, with a current rise of 4.04%, trading at HKD 6.69 and a transaction volume of HKD 24.9972 million [1] Group 2: Index Inclusion - The Hang Seng Index Company announced that HASHKEY HLDGS will be included in the Hang Seng Composite Index, with changes effective after market close on March 6 and active from March 9 [1] Group 3: Market Position - HashKey Exchange is recognized as the largest licensed virtual asset exchange in Hong Kong, holding licenses from the Hong Kong Securities and Futures Commission for categories 1, 7, and 9, with a market share exceeding 75% [1] - Institutional business accounts for 85.5% of HASHKEY HLDGS's operations, with Omnibus client trading volume increasing nearly fivefold [1] - By the first half of 2025, institutional revenue is expected to rise significantly to 68%, driven by the development of digital asset ETFs and increasing institutional demand [1]

Group 1: Financial Strategy and Initiatives - The Hong Kong government will actively align with national development strategies to promote RMB internationalization and continue reforms in the securities market [1] - Legislative measures will be introduced to optimize family office and fund tax systems, as well as establish a licensing system for digital asset trading and custody service providers [1] - A pilot program called the "Northern Urban-Rural Integration Fund" will be launched to encourage the development of rural tourism projects [1] Group 2: Innovation and Technology Development - A series of measures to drive innovation and technology development will be proposed, including the establishment of the "AI+ and Industry Development Strategy Committee" and the promotion of AI training [1] - The government aims to accelerate the digital transformation of the government and promote the industrialization of AI, encouraging widespread application of AI across various industries [1] - The establishment of an "International Clinical Trial Academy" is planned to contribute to the national biomedicine technology sector and position Hong Kong as an international hub for medical innovation [1] Group 3: Industrial Development and Land Supply - Resources will be allocated to build the first overseas National Manufacturing Innovation Center in Hong Kong, along with the launch of a "New Industrial Elite Enterprise Cultivation Program" [2] - The government will carefully consider market conditions and announce specific land sale arrangements quarterly to ensure stable market development, while continuing to refrain from selling general commercial land [2] Group 4: Public Finance and Taxation - The public finance situation has improved faster than expected due to increased tax revenue and the results of a strengthened fiscal consolidation plan, with a projected return to surplus in the 2025/26 fiscal year [2] - The budget proposes to raise the tax exemption thresholds for basic, single-parent, married individuals, children, and dependent parents/grandparents starting from the 2026/27 tax year, along with increasing the deduction limit for elderly care expenses [2] Group 5: Economic Outlook - The past year has seen significant changes in the external environment, and Hong Kong is undergoing economic transformation, particularly in the field of technology innovation and AI [3] - The government emphasizes leveraging its advantages and the solid support from the nation to accelerate economic growth and create better development opportunities for citizens [3]

Core Insights - The global market is undergoing a structural transformation characterized by rapid changes in monetary, fiscal, geopolitical, and technological domains, moving away from a low-interest, globalized stability towards an uncertain new order [11][9][12] - The report maintains a positive outlook for the 2026 economic landscape, driven by nationalist industrial policies and fiscal spending, which will boost capital expenditure cycles [1][3] - Differentiated development characteristics are observed across various asset classes and regional markets, with developed economies (excluding the UK) expected to accelerate growth [1][3] Investment Strategies - In the artificial intelligence sector, a "barbell strategy" is recommended, focusing on short-term investments in data center infrastructure providers and long-term investments in emerging AI application areas [1][19] - Digital assets, particularly Bitcoin, have seen a market capitalization surpassing $2 trillion, with narrowing price volatility and institutional investor interest, suggesting potential as a wealth accumulation tool [1][23] - Water scarcity is identified as a significant global risk, driven by population growth and climate issues, presenting investment opportunities in water infrastructure, water-saving technologies, and recycling sectors [1][27] Asset Allocation - In the stock market, selective stock picking is essential, with U.S. tech stocks driven by AI but facing high valuations, while the Eurozone shows optimistic earnings expectations [2][3] - The fixed income market is expected to see structural increases in long-term bond yields, favoring high-quality, liquid corporate bonds [2] - The dollar is expected to weaken moderately, while the euro benefits from stable policies, and the Swiss franc remains a quality safe-haven asset [2] Regional Developments - The U.S. economy is projected to accelerate, with AI investments peaking and a shift towards a more accommodative monetary policy [3][34] - The UK faces high fiscal and political uncertainty despite easing inflation, while Switzerland's economy stabilizes with a strong franc and promising healthcare sector performance [3][34] - China leads in digital economy and electric vehicle sectors, with a GDP growth rate around 5%, while India emerges as a new growth engine in Asia with improving infrastructure and manufacturing exports [3][34]

Core Viewpoint - The global financial market is exhibiting significant risk-averse characteristics, with Bitcoin (BTC) dropping below the $67,000 mark, influenced by the weakening of traditional tech stocks, particularly the iShares Tech Software ETF (IGV) [1][3]. Group 1: Bitcoin and Tech Stocks - Bitcoin's recent decline is attributed to its increasing correlation with traditional tech stocks, reaching a peak, as evidenced by a 3% drop in the IGV index [1][3]. - The previous trading range of Bitcoin between $68,000 and $70,000 has been disrupted due to sector-wide capital outflows from tech stocks [1][3]. Group 2: Software Sector and AI Impact - The software sector's collective downturn is primarily driven by the disruptive impact of artificial intelligence (AI) technologies, which are reshaping the competitive landscape for traditional software providers [4]. - The perception of Bitcoin as a "software-like" asset has led to a resonance of panic among investors, further exacerbating its price decline [4]. Group 3: Broader Market Trends - The Nasdaq and S&P 500 indices have seen declines of 0.8% and 0.6%, respectively, while stocks of companies like MicroStrategy and major mining firms have dropped by 4% to 5% [4]. - In the precious metals and commodities sector, gold prices have fallen to approximately $4,860 per ounce, a 3% decrease, while silver has plummeted by 6%, down nearly 40% from late January highs [4]. Group 4: Future Outlook - Analysts agree that cryptocurrencies, including Bitcoin, remain constrained by macroeconomic sentiments, with expectations of continued market volatility until a new growth narrative distinct from traditional tech stocks is established [5]. - Despite the technical appeal of Bitcoin below $67,000, significant capital inflows are unlikely without strong macroeconomic data support [5].

Core Viewpoint - Solowin Holdings' subsidiary AlloyX has signed a partnership agreement with Bahrain FinTech Bay to develop and test stablecoin use cases within Bahrain's fintech ecosystem [1] Group 1: Company Developments - AlloyX is seeking regulatory approval from Bahraini authorities to launch a regulated stablecoin [1] - The specific timeline and financial terms for the stablecoin launch have not been disclosed [1] Group 2: Industry Implications - The collaboration aims to explore applications such as cross-border payments, settlements, and tokenized financial services [1]

Core Viewpoint - ARK Invest identifies four major trends enhancing Bitcoin's value, suggesting it is evolving from an "optional" asset to a strategic asset in institutional portfolios [1] Group 1: 2026 Macroeconomic Background - The macro landscape is changing as the U.S. ends its quantitative tightening (QT) and enters an early stage of interest rate cuts, with over $10 trillion in low-yield money market funds and fixed-income ETFs potentially rotating into risk assets [2] Group 2: Policy and Regulatory Normalization - Regulatory transparency is both a constraint and a catalyst for institutional adoption, with policymakers advancing frameworks to clarify digital asset regulations, custody, trading, and disclosure processes [3] - The U.S. government is addressing Bitcoin-related issues, including discussions on incorporating Bitcoin into national reserves [4] Group 3: Structural Demand: ETFs and DATs - The expansion of spot Bitcoin ETFs is reshaping market supply and demand, with ETFs and Digital Asset Trusts (DATs) projected to hold more Bitcoin than newly mined and dormant Bitcoin combined by the end of 2025 [5] - By the end of 2025, ETFs and DATs are expected to hold over 12% of the circulating Bitcoin supply, despite a price drop influenced by external factors [8] Group 4: Bitcoin and Gold as Value Storage - In 2025, gold prices surged by 64.7% due to inflation concerns, while Bitcoin prices fell by 6.2%, indicating a divergence in their responses to macroeconomic narratives [11] - The cumulative net inflows into Bitcoin ETFs have reached levels that took gold ETFs over 15 years to achieve, suggesting growing recognition of Bitcoin as a value storage and diversification tool [13] Group 5: Market Structure and Investor Behavior - Bitcoin's volatility has decreased over time, with maximum drawdowns not exceeding 50% in the current cycle, indicating a more resilient market due to increased participation and liquidity [16] - Historical data shows that holding period and position size are more critical than timing for Bitcoin investors, with long-term holders benefiting from focusing on Bitcoin's value proposition [19][21] Group 6: Strategic Issues for Bitcoin - In 2026, the narrative around Bitcoin has shifted from survival to its role in diversified portfolios, characterized as a scarce, non-sovereign asset amid evolving global monetary policies [22] - Bitcoin is viewed as a high-beta extension of traditional value storage assets like gold, with regulatory advancements facilitating access to global liquidity [24]

Group 1 - The Hang Seng Index Company announced the quarterly review results for the Hang Seng Index series as of December 31, 2025, with HASHKEY HLDGS (03887) being included in the Hang Seng Composite Index [1] - The changes will be implemented after the market closes on March 6, 2026, and will take effect on March 9, 2026, leading to adjustments in the eligible stocks for the Hong Kong Stock Connect [1] - According to CICC research, HASHKEY HLDGS is likely to be included in the Hong Kong Stock Connect due to meeting various criteria, including market capitalization, liquidity, and listing duration [1] Group 2 - HashKey Exchange is the largest licensed virtual asset exchange in Hong Kong, supporting 80 types of digital asset tokens as of September 30, 2025, covering major Layer-1 assets, DeFi tokens, stablecoins, and emerging ecosystem projects [1] - According to Frost & Sullivan, the company is the largest regional onshore platform in Asia by trading volume for 2024 and also the largest digital asset management institution in Asia by assets under management [1] - The company has shown rapid revenue growth, with revenues of HKD 129 million, HKD 208 million, and HKD 721 million for the years 2022, 2023, and 2024, respectively [1]

Stock Performance - The stock of GMM.us experienced significant volatility, with a rapid increase of 5.59% on January 10, 2026, reaching $1.51 per share, following a decline of 6.90% on January 8, 2026, and an increase of 8.45% on January 7, 2026, indicating short-term market sentiment fluctuations [2]. Financial Performance - Recent financial reports indicate that the company generated revenue of $26.73 million, with a net profit of $5.04 million and earnings per share of $1.19, while maintaining a stable gross margin. The 2024 financial report shows a year-over-year revenue growth of 53.8%, with significant growth in digital asset business revenue [3]. Business Development - The company focuses on virtual content production for the metaverse, utilizing the MofyLab technology platform. In 2024, it launched the AI video generation platform Gausspeed and established a vocational education academy, expanding into overseas markets. Industry-level data policies may provide long-term opportunities [4].