Core Insights - The Hong Kong Monetary Authority (HKMA) President, Yu Weiwen, highlighted the rapid growth of digital asset business among banks in Hong Kong [1] - The introduction of relevant regulatory guidelines has led to an increase in banks offering digital asset-related products and tokenized assets, as well as digital asset custody services [1] Summary by Categories Digital Asset Market Growth - By July 2025, 22 banks are expected to be authorized to sell digital asset-related products, 13 banks for tokenized securities, and 5 banks for digital asset custody services [1] - In the first half of 2025, the total trading volume of bank digital asset-related products and tokenized assets reached HKD 26.1 billion, a 233% increase compared to the same period last year, surpassing the total trading volume of the previous year [1] Asset Management and Government Initiatives - Several asset management companies have announced plans to launch tokenized products, indicating a growing interest in this market [1] - The government is actively promoting the issuance of tokenized bonds, which is expected to sustain the growth momentum in the digital asset sector and provide new impetus for the development of wealth management in Hong Kong [1]

Core Insights - The Hong Kong Monetary Authority (HKMA) has approved 22 banks to sell digital asset-related products and 13 banks to sell tokenized securities by mid-2025 [1] - Five banks have been authorized to provide digital asset custody services [1] - The total trading volume of bank digital asset-related products and tokenized assets reached HKD 26.1 billion in the first half of 2025, representing a 233% increase compared to the same period last year, surpassing the total trading volume of the previous year [1] - Several asset management companies have announced plans to launch tokenized products, and the government is actively promoting the issuance of tokenized bonds, indicating a sustained growth momentum in Hong Kong's digital asset sector [1]

Group 1 - The U.S. House of Representatives passed the "Genius Act" with a vote of 308 to 122, aimed at significant legislative reform for cryptocurrency regulation [1] - The SEC Chairman Paul Atkins expressed that the commission is considering a regulatory "innovation exemption" to encourage tokenization within the regulatory framework [1][3] - The "Genius Act" sets regulatory rules for stablecoins, requiring issuers to maintain a 1:1 reserve with short-term government securities or similar products [2] Group 2 - Supporters of the legislation believe it could lead to faster and lower-cost payment methods, potentially legitimizing a market currently valued at $265 billion, which is expected to grow to $3.7 trillion by 2030 [2] - Paul Atkins has a different stance on cryptocurrency compared to his predecessor Gary Gensler, planning to roll back many of Gensler's regulations [2] - Financial institutions are actively working on tokenizing popular U.S. stocks and creating tokenized products for privately held companies, indicating a trend towards asset migration to blockchain [3]

Group 1 - The core viewpoint is that more Hong Kong brokerages are expected to enter the virtual asset business, driven by recent policy support and market conditions [1][2] - The Hong Kong government has released the "Digital Asset Policy Declaration 2.0," aiming to establish the region as a global innovation center for digital assets, with strategies to optimize laws and regulations, expand tokenized product categories, and promote application scenarios [2] - The brokerage sector is entering an earnings window, with expectations that profitability may exceed forecasts due to favorable market conditions [1][2] Group 2 - Recent fluctuations in the ten-year government bond yield, which has been between 1.6% and 1.7%, are anticipated to influence the life insurance sector, potentially leading to a reduction in the preset interest rate for life insurance [2]

Market Overview - The three major stock indices experienced strong fluctuations in the morning but fell in the afternoon due to declines in the insurance and brokerage sectors. The Shanghai Composite Index closed down 0.22% at 3448.45 points, the Shenzhen Component Index down 0.48% at 10343.48 points, and the ChiNext Index down 0.66% at 2114.43 points. The total trading volume in the Shanghai and Shenzhen markets was 162.35 billion yuan [1] Investment Opportunities - The virtual asset business of securities companies is expected to enter a fast track following the issuance of guidelines to support consumption by the People's Bank of China and the China Securities Regulatory Commission. The approval of virtual asset trading services for Guotai Junan International marks a significant breakthrough for mainland brokerages in Hong Kong [2] - The current PB valuation of the securities III index is 1.37 times, at about the 45th percentile since 2018, while the Chinese brokerage index's PB valuation is 0.69 times, at about the 52nd percentile since 2018, indicating strong potential for growth in the brokerage sector [2] Industry Developments - Xinjiang's price reform for renewable energy has been implemented, with the local development and reform commission issuing specific guidelines for market-oriented pricing of renewable energy. This reform is expected to lead to a decrease in average sales prices for wind and solar energy, while also promoting rational investment in the industry [3] - Hong Kong's government released the "Hong Kong Digital Asset Development Policy Declaration 2.0," which aims to optimize legal and regulatory frameworks, expand tokenized product categories, and enhance talent development. This initiative reinforces Hong Kong's ambition to become a global leader in the digital asset sector [4] Regulatory Updates - The Financial Regulatory Bureau and the People's Bank of China jointly released a plan for the high-quality development of inclusive finance in the banking and insurance sectors, aiming to establish a comprehensive inclusive financial system over the next five years [5][6] - The Ministry of Commerce announced that it will expedite the review of export licenses for rare earths, emphasizing the importance of maintaining global supply chain stability [7] Economic Policies - The National Development and Reform Commission indicated that the third batch of funds for the "old for new" consumption policy will be allocated in July, with significant sales growth in related products exceeding 1.4 trillion yuan this year [8]