Industry Insights - The hotel industry is experiencing a recovery in demand, with a narrowing decline in RevPAR year-on-year for September. Mid-range and high-end hotels are outperforming economy hotels, and business demand is showing a clear upward trend. The upcoming holiday period is expected to see an increase in both volume and pricing, with RevPAR projected to achieve mid-single-digit growth year-on-year [2] - In the real estate sector, the top 100 companies have a total land acquisition amount of 727.8 billion, representing a year-on-year increase of 36.7%. The growth rate has expanded by 8.7 percentage points compared to the previous months. In September, some real estate companies acquired large-scale land through purchases, with state-owned enterprises dominating the land acquisition [2] - Several packaging paper companies have announced a new round of price increases, with some companies issuing price increase notices for corrugated paper and other types of packaging paper ten times since August, with each increase ranging from 300 to 500 yuan per ton. The demand surge during the holiday season, combined with rising raw material prices, is driving up the cost of paper [2] Company Developments - BYD reported September sales of 396,300 new energy vehicles, a decrease from 419,400 units in the same month last year [3] - Xpeng Motors delivered 41,581 new vehicles in September, marking a year-on-year increase of 95% and a month-on-month increase of 10%, achieving a record monthly delivery of over 40,000 units [3] - Leap Motor achieved a new delivery record of 66,657 units, with a year-on-year growth of over 97%, marking the first time monthly sales exceeded 60,000 units [3] - Li Auto delivered 33,951 new vehicles, while Lantu delivered 15,224 units. NIO delivered 34,749 new vehicles, reflecting a year-on-year increase of 64% [3] - Xiaomi's vehicle deliveries exceeded 40,000 units, and Zeekr delivered 51,159 vehicles, representing a year-on-year growth of 8.5% [3] Regulatory Updates - The Hong Kong Monetary Authority has received applications for stablecoin licenses from 36 institutions, including banks, tech companies, and payment agencies. The authority aims to review these applications and announce the first batch of stablecoin issuers by early next year, with a high threshold for license issuance [4]

MEXC Ventures' total investment in Ethena’s ENA has risen to $30M, reinforcing its role as an “industry enabler." | Credit: Pexels. Key Takeaways MEXC has now committed a total of $30 million to Ethena’s governance token ENA. The firm positions itself as an “industry enabler”. Ethena is expanding its synthetic dollar protocol and governance token adoption. MEXC Ventures has doubled down on its backing of Ethena, committing a second investment to the protocol’s governance token ENA. The latest fun ...

Core Viewpoint - Tianji Holdings (01520) has reported a significant increase in its stock price, driven by its strategic focus on stablecoin-related businesses and Web3.0 initiatives, reflecting strong market optimism about its future growth [1][2]. Financial Performance - In the first half of 2025, the company achieved a revenue of HKD 23.12 million and a gross profit of HKD 2.929 million [1]. Strategic Initiatives - The company is actively expanding its presence in the stablecoin and Web3.0 sectors through various investments and acquisitions, aiming to enhance its business portfolio [1][3]. - Tianji Holdings has entered into a strategic partnership with Xizuchain Technology to establish a joint venture focused on Web3.0 sports IP consumption operations, further deepening its engagement in the "Web3.0+" space [4]. Market Trends - The stablecoin market is poised for growth, supported by regulatory developments in multiple countries, including the U.S. and Hong Kong, which are establishing frameworks for stablecoin issuance and regulation [2][5]. - The rise of Real World Assets (RWA) is expected to create a massive market opportunity, potentially reaching a trillion-dollar scale, as these assets are digitized and integrated into blockchain ecosystems [2][5]. Partnerships and Collaborations - The company has formed strategic alliances with notable firms, including a partnership with Xinqiao Capital to leverage AI and blockchain technologies for enhancing decentralized business operations [3]. - Tianji Holdings has established strong relationships with global gaming and entertainment companies, which may synergize with its stablecoin initiatives to unlock new growth avenues [5].

Market Overview - A-shares major indices rose last week, with trading volume remaining high [1] - Among 31 Shenwan first-level industries, communication, electronics, and comprehensive sectors performed relatively well [1] Macroeconomic Data Analysis - In July, national general public budget revenue reached 20,273 billion yuan, a year-on-year increase of 2.6%, with central and local revenues growing by 2.2% and 3.1% respectively, marking the highest monthly growth this year [3] - Government fund revenue in July increased by 8.9% year-on-year, while government fund expenditure growth was 42.4% [3] - The first account revenue showed positive tax revenue growth for four consecutive months, while non-tax revenue declined [3] - Land transfer revenue continued to grow positively, linked to local governments actively selling quality land [3] - Overall, broad fiscal expenditure maintained positive year-on-year growth supported by government debt, with net financing close to 8 trillion yuan in the first half of the year, an increase of 4.3 trillion yuan year-on-year [3] Stock Market Strategy Outlook - The market showed strong fluctuations last week, with liquidity remaining ample and a bullish trend supported by technology leaders [7] - Despite some concerns about economic data and stimulus expectations, favorable factors are outweighing these worries, with a supportive monetary policy environment [7] - The market is expected to maintain upward momentum without significant adjustments in August, with attention shifting to macro catalysts and trading indicators in September [7] Industry Insights - For defensive dividend sectors, it is recommended to reduce allocation or adjust the structure in the short term, favoring cyclical sectors with expected rebounds [9] - Focus on dividend stocks with catalysts, as well as stable and defensive attributes in Hong Kong stocks, financials, utilities, and precious metals [9] - In offensive sectors, technology remains a key focus, with opportunities arising from domestic policy stability and U.S. policy fluctuations [9] - Opportunities in domestic demand, technology, and overseas expansion are highlighted, with a focus on undervalued index-weighted stocks for potential capital inflows [8][9]

Core Insights - The U.S. debt has surpassed $37 trillion, and the U.S. Treasury market is increasingly viewing stablecoin issuers like Tether and Circle as key buyers [1] - The recently signed GENIUS Act establishes guidelines for the stablecoin industry, promoting explosive adoption of dollar-pegged digital tokens on Wall Street [1] - Analysts suggest that a well-regulated stablecoin market could solidify the dollar's dominance in the digital finance world [1] Stablecoin Market Dynamics - Stablecoin issuers are required to back their tokens with U.S. dollars or high-quality liquid assets on a one-to-one basis, positioning short-term Treasury bills as preferred collateral [1] - Tether and Circle dominate a $250 billion stablecoin market, which is projected to grow by 22% by 2025 [1] - Tether's USDT accounts for approximately 65% of the stablecoin market, while Circle's USDC holds about 25%, together representing 90% of the market share [1] Treasury Market Impact - Currently, stablecoin issuers hold about $125 billion in Treasury securities, which is less than 2% of the total outstanding Treasury debt of $6 trillion [3] - Predictions indicate that the stablecoin market could double to $500 billion by 2028, with estimates reaching $2 trillion and $4 trillion by 2030 and 2035, respectively [3][4] - The U.S. Treasury is increasingly relying on short-term Treasury bill issuance as traditional buyers like China and Japan reduce their purchases [3] Future Demand Projections - Tether is projected to become one of the largest buyers of U.S. Treasuries, potentially surpassing Japan by 2030 [4] - Stablecoins may significantly influence short-term yields, with a $3.5 billion inflow potentially lowering three-month Treasury yields by 2-2.5 basis points [4] - If stablecoin demand exceeds $1 trillion in the coming years, they will become a crucial factor for the Treasury in determining its debt issuance schedule [4] Economic Implications - The shift of funds into stablecoins may reduce bank deposits and lower reserve requirements, potentially impacting loan supply in the economy [5] - Despite concerns, industry participants believe that stablecoins will act as a meaningful accelerator for economic growth both in the U.S. and abroad [5]

Market Performance - The Hong Kong stock market saw strong gains, with the Hang Seng Tech Index leading the way, rising by 3.01% to surpass the 5800-point mark and setting a new high for the period [1] - The Hang Seng Index increased by 1.94%, gaining nearly 500 points and approaching the 26000-point threshold, while the National Enterprises Index rose by 1.85%, indicating a bullish market sentiment [1] Sector Performance - Major technology stocks drove the market rally, with Baidu and NetEase both rising over 6%, Alibaba up by 5.5%, Kuaishou increasing by over 5%, JD.com up by over 4%, and Meituan rising over 3% [1] - The implementation of supply-side reforms, combined with multiple catalysts, led to significant gains in the rare earth sector, with Jinli Permanent Magnet surging over 14% [1] - Stocks in copper, gold, and other non-ferrous metals also experienced gains, reflecting a broader positive trend in commodity-related sectors [1] - Goldman Sachs indicated that the boom in stablecoins is just beginning, leading to a collective rise in stablecoin-related stocks [1] - The optimization of real estate policies in Shanghai resulted in strong performance from domestic property stocks, with Vanke Enterprises rising nearly 10% [1] - Other sectors such as gaming, brain-computer interface, steel, home appliances, dining, high-speed rail infrastructure, solar energy, coal, and semiconductor stocks also saw upward movement [1] Declining Sectors - Conversely, consumer electronics stocks generally declined, with the electronic cigarette giant Smoore International falling by 4.6% [1] - Biopharmaceutical B-shares and vocational education stocks mostly trended lower, with the exclusion of certain stocks from the Hang Seng Composite Index [1] - Eucan Vision Biotech B reported a net loss of 132 million yuan in the first half of the year, leading to a decline of over 15% in its stock price [1]

Group 1: Market Overview - The Hong Kong Monetary Authority and Securities and Futures Commission have issued a joint statement regarding the recent speculation in the stablecoin market, indicating that they will adopt a prudent approach in issuing licenses for stablecoin issuers, with high standards and only a few licenses to be granted initially [1] - Goldman Sachs has reported that the stablecoin market is at the beginning of a new gold rush, with a potential total market size reaching several trillion dollars, and USDC is expected to benefit from market share growth as legislation progresses [4] - The global stablecoin market is projected to exceed $250 billion by 2025, growing over 11 times from 2020, with a compound annual growth rate of 65% [7] Group 2: Growth Drivers - Regulatory frameworks such as the US GENIUS Act and Hong Kong's Stablecoin Regulation are expected to drive compliance and facilitate the issuance of stablecoins, with companies like Circle raising $624 million through IPOs [9] - The tokenization of real-world assets (RWA) such as US Treasury bonds and real estate has reached $35 billion and is expected to exceed $50 billion by 2026, providing long-term growth momentum for stablecoins [9] - Stablecoins are significantly reducing cross-border remittance costs and transaction times, with notable usage in regions like Yiwu, China, and the Philippines [10] Group 3: Company Developments - MetaMask plans to launch the stablecoin mUSD by the end of August, targeting 30 million monthly active users, backed by short-term US Treasury yields [2] - Citigroup is considering entering the stablecoin space by providing custody, payment, and dollar exchange services, and is even contemplating issuing its own stablecoin [3] - Companies like Beixin Source and Yuyin Co. are developing technologies and solutions to support stablecoin issuance and transactions, with Beixin Source integrating with Hong Kong's regulatory sandbox [14][15] Group 4: Future Outlook - The integration of stablecoins into decentralized finance (DeFi) and the tokenization of real-world assets is expected to deepen the connection between traditional finance and the crypto world [12] - Major retail giants like Walmart and Amazon are preparing to issue their own stablecoins, indicating a trend towards mainstream adoption [11] - The stablecoin market is anticipated to evolve from being merely a cash equivalent in the crypto world to becoming a core component of global digital financial infrastructure [12]

Group 1: Circle Internet Group (CRCL US) - Circle maintains a "Buy" rating with a target price adjusted to $212.0, down from $305.3[1] - Q2 2025 revenue increased by 53% year-on-year to $658 million, driven by USDC issuance growth[1] - Net loss for Q2 2025 was $482 million, primarily due to $591 million in IPO-related expenses, but adjusted EBITDA rose by 52% to $126 million[1] - Projected revenue growth rates for 2025-2027 are 60.3%, 76.7%, and 69.5% respectively, with net profit growth rates of 88.9%, 102.5%, and 102.7%[1] - The stablecoin market is expected to reach $320 billion, $600 billion, and $1 trillion in 2025, 2026, and 2027 respectively[1] Group 2: Industry Position and Risks - Circle's competitive advantages include regulatory compliance, ecosystem neutrality, and technological leadership in cross-chain interoperability[1] - Catalysts for growth include the expansion of the stablecoin market, regulatory acceptance, and the growth of real-world assets (RWA)[1] - Risks involve tightening regulations, increased competition, and lower-than-expected penetration rates in the stablecoin market[1] Group 3: Haitian International (01882 HK) - Haitian International upgraded to "Buy" with a target price raised to HKD 26.00, citing attractive valuation and strong future earnings growth expectations[5] - The company reported strong mid-term results with overseas sales growth exceeding expectations, while domestic sales remained stable[5] - Projected earnings per share for 2025-2027 are RMB 2.13 (+2.6%), RMB 2.03 (+1.4%), and RMB 2.30 (+1.7%) respectively[5] - Overseas sales reached RMB 3.818 billion, a year-on-year increase of 34.7%, with Southeast Asia showing particularly strong growth of 90.0%[5]

Group 1 - JPYC, a Japanese fintech startup, has received regulatory approval to issue Japan's first yen-pegged stablecoin, marking Japan's entry into the global stablecoin competition [1] - The stablecoin will be fully convertible with the yen and backed by domestic savings and Japanese government bonds (JGB), with plans to issue 1 trillion yen (approximately $6.81 billion) worth of JPYC within three years [1] - JPYC aims to attract institutional investors such as hedge funds and family offices, with applications in arbitrage trading, cross-border remittances, and corporate payments [1] Group 2 - The approval from the Financial Services Agency (FSA) is based on the revised Payment Services Act effective in 2023, which provides a regulatory framework for electronic payment tools convertible with the yen [2] - JPYC will register as a money transfer service provider and plans to start selling its stablecoin products in the coming weeks, generating revenue through interest income from holding more JGB instead of charging transaction fees [2] - Blockchain-based stablecoins are gaining global attention for their fast and low-cost transaction characteristics, with the U.S. also moving towards stablecoin regulations to promote their use in daily payments and settlements [2] Group 3 - The launch of a yen stablecoin could bring fee income in areas such as custody services and collateral management for the banking industry, with several fintech companies expressing optimism about domestic stablecoins [3] - Concerns remain regarding the price volatility of stablecoins and the assumption that one stablecoin will always equal one yen, despite stablecoins typically being less volatile than cryptocurrencies [3] - Anti-money laundering measures will be a focal point if stablecoins are used or traded by unspecified parties, especially in cases of remittances to recipients not subject to KYC restrictions [3]

Investment Rating - The investment rating for Circle Internet Group (CRCL US) is maintained as "Buy" with a target price of US$212.00, down from the previous target of US$305.30 [3][8]. Core Insights - The report highlights that Circle's Q2 2025 earnings exceeded basic scenario expectations, driven by a significant increase in USDC issuance, with total revenue and reserve asset income growing by 53% year-on-year to US$658 million [8]. - The stablecoin market is in a critical expansion phase, with projected global market sizes of US$320 billion, US$600 billion, and US$1 trillion for 2025, 2026, and 2027 respectively [8][9]. - Circle's competitive advantages include compliance prioritization, ecosystem neutrality, and technological leadership, which are expected to create a robust network effect and long-term value creation potential [8][16][19]. Financial Projections - Total revenue is projected to grow from US$1,450 million in 2023 to US$8,053 million by 2027, with net profit increasing from US$268 million to US$1,207 million over the same period [23]. - The report anticipates adjusted EBITDA growth of 52% year-on-year, reaching US$126 million in Q2 2025, despite a net loss of US$482 million primarily due to IPO-related expenses [8]. Market Dynamics - The report identifies key catalysts for growth, including the booming stablecoin market, regulatory acceptance, and the accelerated growth of real-world assets (RWA) and cryptocurrency markets [2][21]. - Challenges include tightening regulations, increased competition in the stablecoin space, and lower-than-expected penetration of stablecoins [2][21]. Strategic Focus Areas - Investors are advised to monitor Circle's progress in three critical areas: global compliance infrastructure development, core infrastructure technology research and development, and institutional product innovation and strategic expansion [8].