Core Viewpoint - The implementation of the "Stablecoin Regulation" in Hong Kong has led to a significant decline in stablecoin-related stocks, reflecting market concerns over the regulatory environment and the licensing process [1][2]. Group 1: Market Reaction - Stablecoin concept stocks in Hong Kong experienced a collective drop, with notable declines: Yao Cai Securities fell nearly 20%, Yunfeng Financial dropped over 16%, and Lianlian Digital decreased over 13% [2]. - A-share digital currency concept stocks also showed weakness, with Sifang Jingchuang down over 5%, Xiongdi Technology and Tianyang Technology down over 4%, and Hengbao shares down over 3% [2]. Group 2: Regulatory Developments - The "Stablecoin Regulation" officially came into effect on August 1, covering the issuance of "fiat stablecoins" and "Hong Kong dollar stablecoins" in Hong Kong [2]. - Under the new regulation, any entity issuing fiat stablecoins in Hong Kong must apply for a license from the Financial Management Commissioner, which aims to provide better protection for the public and investors [2][3]. - The Hong Kong Monetary Authority (HKMA) has indicated that the licensing timeline is later than expected, with no licenses issued as of July 29, and institutions are advised to submit applications by September 30, 2025 [2][3]. Group 3: Transitional Arrangements - The HKMA has established a six-month transitional period for institutions that issued stablecoins before August 1, 2025, allowing them to continue operations while applying for licenses [3]. - After the transitional period, institutions that do not obtain a license must cease operations in Hong Kong [3]. Group 4: Licensing and Compliance Requirements - The HKMA has stated that only a limited number of stablecoin licenses will be granted initially, with several institutions expressing interest in applying [3]. - The "Guidelines for Licensed Stablecoin Issuers" require licensees to implement effective customer onboarding policies and procedures, ensuring due diligence before providing issuance or redemption services [3].

Core Viewpoint - Hong Kong is positioned as a strategic testing ground for stablecoins, driven by regulatory policies and the readiness for cryptocurrency trading, which will benefit issuers, brokers, and fintech companies first [2][5]. Regulatory Framework - The new stablecoin regulations in Hong Kong will take effect on August 1, 2025, marking a significant step in the global stablecoin regulatory race [5]. - Key highlights of the regulations include a requirement for issuers to maintain a 1:1 high liquidity reserve, a minimum capital requirement of 25 million HKD, and mandatory transparency regarding reserve asset composition [6][7]. Industry Opportunities - Companies with mature blockchain technology, such as Futu Holdings and ZhongAn Online, are expected to be early beneficiaries of the stablecoin market due to their existing connections with cryptocurrency platforms [3][8]. - Traditional financial institutions may experience a slower transformation, as stablecoins do not generate interest and cannot be used for lending, limiting their competitive impact [8]. Challenges for RMB Stablecoin - The development of RMB stablecoins (CNH) may lag behind USD and HKD stablecoins due to factors such as limited offshore RMB liquidity (approximately 1 trillion RMB) and competition with existing RMB cross-border settlement tools [4][9]. - Despite these challenges, there is potential for RMB stablecoins to gain traction if they can integrate with the RMB cross-border payment system (CIPS) and expand offshore RMB bond issuance [9]. Future Outlook - Hong Kong's stablecoin initiative is a strategic move for China to respond to global digital finance competition and solidify its status as an international financial center [11][12]. - The stablecoin framework may reshape cross-border investment processes, enabling seamless transactions across different currencies [11].

Group 1 - Circle's stock surged 19% in the US market, reflecting global recognition of stablecoin compliance development, which is beneficial for China's Xinchuang (information technology application innovation) industry [1] - Circle's collaboration with domestic Xinchuang companies has resulted in practical applications, such as a blockchain-based cross-border payment system developed with Dongxin HePing, certified by the central bank and piloted in six cities [1][2] - The integration of Circle's USDC stablecoin technology with domestic blockchain solutions is expected to accelerate the application of Xinchuang technology in cross-border payments and digital identity in Southeast Asia [1][2] Group 2 - The Xinchuang industry is accelerating the autonomous and controllable process of blockchain technology, with companies like Dongfang Securities completing a full-stack domestic replacement of their blockchain platform [2] - Circle's success validates the feasibility of blockchain technology in finance, promoting domestic Xinchuang companies to iterate on technology architecture and security standards [2] - China Mobile's "Zhongyi Chain" achieved a transaction throughput of over 56,000 CTPS in a trusted blockchain performance evaluation, setting a benchmark for high-concurrency applications [2] Group 3 - Circle's application in cross-border payments aligns with China's strategy to internationalize the digital yuan, with the central bank establishing an international operation center for the digital yuan [3] - The efficiency of Circle's USDC in cross-border settlements provides a reference model for the digital yuan, which is expected to reach a cross-border payment amount of 64.1 trillion yuan in 2024 [3] - The market enthusiasm for Circle may further encourage policy support for cross-border scenarios of the digital yuan, benefiting payment system service providers and financial IT companies within the Xinchuang industry chain [3] Group 4 - Chinese policies explicitly support blockchain technology breakthroughs, with initiatives like Beijing's "reveal the list and take the lead" mechanism promoting the construction of the Xinchuang chain technology ecosystem [4] - Circle's compliance path offers a reference for domestic regulation, potentially accelerating the exploration of stablecoin-related technologies within the Xinchuang framework [4] - As of June 30, the digital currency concept stocks accounted for over 15% of the Xinchuang ETF fund's index, indicating significant investment interest in this area [4] Group 5 - The Xinchuang industry is transitioning from policy-driven to a dual-driven approach of policy and market, with significant growth expected in the financial and energy sectors [6] - The market scale is projected to grow at rates of 17.84% and 26.82% in 2025 and 2026, respectively, surpassing 2.6 trillion yuan by 2026 [6] - The expansion of special national bonds and the implementation of debt reduction plans provide funding support for Xinchuang procurement [6] Group 6 - The Xinchuang ETF fund (562030) tracks the CSI Xinchuang Index, covering core segments of the Xinchuang industry chain, which is characterized by high growth and elasticity [7] - The current geopolitical environment and the urgent need for self-control drive the development of the Xinchuang sector, supported by government initiatives [7] - The upcoming key time nodes for Xinchuang advancement and the refinement of procurement standards are expected to enhance market dynamics [7]

Core Viewpoint - The Hong Kong government aims to issue stablecoin licenses by the end of the year, with the regulatory framework set to take effect in August 2023, which is expected to boost the digital asset market and cross-border payment solutions [1][2]. Regulatory Developments - The Hong Kong Legislative Council passed the Stablecoin Ordinance on May 21, 2023, establishing a licensing system for stablecoin issuers, which requires them to apply for licenses from the Hong Kong Monetary Authority (HKMA) [2]. - The HKMA is currently consulting the market on the specific guidelines for the ordinance, which will include anti-money laundering and other related requirements [1][2]. Market Reactions - Following the announcement of the stablecoin licensing, stocks related to cross-border payments and stablecoins surged in both A-share and Hong Kong markets, with several stocks hitting their daily price limits [3][4]. - Notable stock performances include: - Zhongyi Technology (涨停) at 51.22 CNY, up 20.01% - Huafeng Super Fiber (涨超10%) at 9.85 CNY, up 10.44% - Guotai Junan International (国泰君安国际) in Hong Kong, which saw its stock price rise over 9% [4]. Stablecoin Applications - The HK government emphasizes that stablecoins should address challenges in the real economy, particularly in cross-border payments where local currency risks are high [1]. - The potential for stablecoins to serve as effective payment tools in regions with unstable financial systems is highlighted, especially in cases of severe inflation or currency depreciation [1]. Industry Interest - At least nine institutions have expressed interest in applying for stablecoin licenses, including three that are part of the HKMA's stablecoin issuance sandbox, all planning to issue Hong Kong dollar-pegged stablecoins [2].

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% over the next 6 months [15]. Core Insights - Stablecoins have become a significant topic in global financial regulation, with major economies moving towards integrating stablecoins into existing financial regulatory frameworks to ensure their safe and controlled participation in payment and settlement scenarios [3]. - Hong Kong is actively establishing a clear regulatory path for stablecoins, having introduced a licensing system for stablecoin issuers, which is set to be implemented on August 1, 2025. This regulatory framework aims to protect consumer rights through capital requirements and reserve management [4]. - The Hong Kong dollar stablecoin is expected to play a crucial role in facilitating regional trade and cross-border financing while enhancing Hong Kong's position in the Asian clearing system [5][6]. Summary by Sections Global Regulatory Trends - Major economies, including the EU and the US, are advancing their regulatory frameworks for stablecoins, with the EU's MiCA set to be implemented by December 2024 and the US accelerating its legislative process [3]. Hong Kong's Regulatory Framework - Hong Kong's proactive approach includes a policy declaration on virtual asset development and the introduction of a sandbox for stablecoin issuers, which has attracted various stakeholders to explore pilot projects [4]. Development Prospects of Hong Kong Dollar Stablecoin - The Hong Kong dollar stablecoin is positioned to become one of the first officially compliant local stablecoins, potentially serving as a bridge for the internationalization of the Renminbi and reinforcing Hong Kong's status as an international financial center [6].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Global financial assets are being reallocated, with funds flowing to Chinese assets, and A-shares are expected to evolve into a capital-driven upward trend [2][3][4] - Multiple factors, including US debt monetization, countervailing tariffs, crude oil price surges, and China's anti-involution efforts, are contributing to a global inflationary trend [2][14][18] - Various factors such as Fed rate cut expectations and China's anti-involution are influencing the prices of different asset classes, including equities, commodities, gold, bonds, and foreign exchange [3][4][32] Summary by Related Catalogs Geopolitical Situation - The Israel-Iran ceasefire is a prelude to a larger conflict, and Iran may become "Gaza-like." Israel's actions against Iran are likely to occur in four steps [10] Crude Oil Market - The crude oil price surge in June was likely the first wave. In the context of the Israel-Iran conflict, future disruptions to Iran's oil production and potential blockades of the Strait of Hormuz could cause oil prices to skyrocket, similar to the 1970s [12][16] Global Inflation - US debt monetization, countervailing tariffs, crude oil price pulses, and China's anti-involution efforts are jointly contributing to a global inflationary curve [2][14][18] Global Financial Asset Reallocation - Global investment institutions are "de-Americanizing," selling US stocks, bonds, and the dollar, and reallocating funds to Chinese assets [2][20][23] Equity Market - Global financial asset reallocation and the migration of household savings and insurance funds to the stock market are driving A-shares towards a capital-driven upward trend [2][3][32] Commodity Market - China's anti-involution and Fed rate cut expectations are expected to help industrial product prices recover [3][32][36] Gold Market - Stablecoins are replacing the dollar in trade settlements, accelerating the decline of the dollar's credit, while gold is still in a technical adjustment phase [3][41][43] Bond Market - With a large-scale bond issuance and the central bank removing the mention of "timely reserve requirement ratio and interest rate cuts," the bond market faces certain pressures [44] Foreign Exchange Market - China is expected to achieve a double surplus in trade and capital, and the offshore RMB exchange rate is expected to continue strengthening [3][4][45] July Outlook for Various Asset Classes - **Equity Assets**: Global financial asset reallocation and the migration of household savings are driving funds into Chinese equities [4][46] - **Commodities**: Anti-involution and Fed rate cut expectations are expected to boost industrial product prices [4][36][46] - **Gold Assets**: Stablecoins are replacing the dollar in trade, and gold is in a technical adjustment [4][41][46] - **Bond Assets**: The central bank's policy adjustment and large-scale bond issuance are putting pressure on the bond market [4][44][46] - **Foreign Exchange Assets**: A double surplus in trade and capital is expected to strengthen the offshore RMB [4][45][46]

Core Viewpoint - The article discusses the emergence of stablecoins in Hong Kong, particularly focusing on the operations and strategies of Round Coin Technology, one of the first licensed issuers under the new Stablecoin Regulation. Group 1: Company Overview - Round Coin Technology was founded in 2021 and is recognized as a pioneer in compliant stablecoin initiatives in Hong Kong, with a board chaired by former HKMA president Norman Chan [6][7]. - The company has a diverse management team with backgrounds in web3, digital payments, and traditional banking, which enhances its compliance and risk management capabilities [7][8]. Group 2: Market Context - As of May 2023, the global stablecoin market reached a total market capitalization of $250 billion, growing over tenfold in the past five years [2]. - The stablecoin market in Hong Kong is expected to expand significantly as traditional enterprises begin to adopt compliant stablecoins following the regulatory framework [12]. Group 3: Business Model and Strategy - Round Coin Technology plans to enter the market through three main application scenarios: cross-border payments, licensed virtual asset exchanges, and Real World Asset (RWA) tokenization [3][11]. - The revenue model for stablecoin issuers primarily derives from interest on underlying assets, with the law stipulating that interest from reserve assets belongs to the issuer [9][8]. Group 4: Regulatory Environment - The Stablecoin Regulation in Hong Kong is set to create a compliant framework that will allow only licensed stablecoins to be used by the public, providing a competitive edge for compliant issuers like Round Coin Technology [3][12]. - The regulation also allows for multi-currency stablecoins, indicating future plans for Round Coin Technology to issue stablecoins pegged to currencies other than the Hong Kong Dollar [3][12]. Group 5: Competitive Landscape - The current market is dominated by USD-pegged stablecoins like USDT and USDC, which hold 90% of the market share. However, Round Coin Technology aims to capture market share through compliance and the introduction of various stablecoins [12][14]. - The company does not intend to compete directly with USD stablecoins but rather focuses on the untapped market potential in Hong Kong and the surrounding regions [12][13]. Group 6: Industry Impact - Stablecoins are expected to revolutionize cross-border payments, with potential cost reductions of 30% and speed improvements of 40% compared to traditional banking systems [17]. - The integration of stablecoins into the financial ecosystem can enhance the efficiency of economic operations and provide a bridge between fiat and digital currencies [18][19].

Core Viewpoint - The article discusses the emergence of stablecoins in Hong Kong, particularly focusing on the collaboration between Animoca Brands, Standard Chartered Bank, and Hong Kong Telecom to issue a Hong Kong dollar-pegged stablecoin, which is seen as a crucial link for cross-border transactions and financial settlements in the region [6][7][18]. Group 1: Stablecoin Development - The Hong Kong government has announced that the Stablecoin Regulation will take effect on August 1, 2025, marking a significant step in the regulatory framework for stablecoins [6]. - Animoca Brands is one of the first participants in the stablecoin issuance sandbox, alongside Standard Chartered Bank and Hong Kong Telecom, and they have formed a joint venture to prepare for the issuance of the stablecoin [6][7]. - The stablecoin is expected to facilitate various applications, including virtual asset transactions within gaming ecosystems and cross-border trade settlements [16][17]. Group 2: Company Overview - Animoca Brands initially gained recognition in the blockchain gaming sector and has since expanded into Web3, focusing on decentralized identity and education projects [14][15]. - The company's business model includes self-developed projects, returns from investments in over 570 Web3 companies across various sectors, and consulting services akin to investment banking [15][16]. - The collaboration with Standard Chartered and Hong Kong Telecom aims to leverage their respective strengths in banking and retail to enhance the stablecoin's market reach [16][19]. Group 3: Market Implications - The stablecoin is positioned as a vital tool for connecting mainland asset transactions to international markets, especially given Hong Kong's status as a major offshore RMB trading center [7][18]. - The article highlights the potential for the stablecoin to support a wide range of financial products and services, indicating a trend towards the digitization of financial assets on public blockchains [17][18]. - Animoca Brands emphasizes the need for a neutral currency in Hong Kong to facilitate international transactions, particularly in light of geopolitical influences [18][19]. Group 4: Regulatory Environment - The article notes that the Hong Kong Monetary Authority (HKMA) is actively working on a regulatory framework for stablecoins, which is crucial for building a compliant financial ecosystem [24][25]. - The company has gained valuable compliance experience during the sandbox testing phase, focusing on investor protection and regulatory requirements [21][26]. - There is a recognition that while stablecoins can offer high security, the lack of regulatory oversight poses risks, necessitating a push for legally compliant stablecoin solutions [26].

Core Insights - The recent passage of the stablecoin bill in the U.S. Senate and the approval of the Hong Kong stablecoin regulation have made stablecoins a hot topic, with expectations of a significant explosion in the blockchain digital economy [1] - Dr. Xu Gang, founder and chairman of Digital Capital Group (DCG), believes that stablecoins and the tokenization of real-world assets (RWA) are innovating the global financial system through blockchain technology, enhancing efficiency and promoting social equity and economic inclusion [1][6] - The concept of asset tokenization emerged with the development of blockchain technology, initially focusing on cryptocurrencies like Bitcoin and later expanding to various financial instruments and services [1] Tokenization Trends - Other asset classes such as commodities, bonds, and funds are also being tokenized, driven by the widespread adoption of decentralized finance (DeFi) protocols [3] - The market for tokenized assets is projected to reach between $30 trillion and $50 trillion by 2030, indicating a transformative trend in the financial industry [3] - Over 1,200 unique security tokens are currently trading across various platforms, covering debt, equity, real estate, and commodities, with a monthly trading volume reaching a peak of $14 billion in December [3] Real Estate and Bonds - Real estate dominates the tokenization landscape, with $24 billion in tokenized projects announced, of which $5.4 billion are live on-chain [3] - Tokenized bonds have gained attention, with a total issuance of $12.8 billion across Germany, China, Hong Kong, and other European markets [4] - The adoption of liquidity funds is accelerating, with Franklin Templeton's on-chain U.S. government money fund accumulating $375 million in assets under management within six weeks [4] Efficiency and Transparency - Tokenization enhances transparency and simplifies the securitization process, reducing costs associated with traditional methods that rely on intermediaries [5] - JPMorgan Chase's initiative to tokenize auto loan receivables demonstrates how blockchain can bring efficiency and transparency to the securitization market [5] - Early adopters of tokenization are expected to gain competitive advantages, capturing new revenue streams and reshaping the global financial market [6]

Group 1 - The core focus of the news is the recent establishment of a regulatory framework for stablecoins in Hong Kong, marking a significant step in the global financial landscape [1][3]. - The Hong Kong Monetary Authority (HKMA) has initiated a pilot program for the digital Hong Kong dollar (e-HKD+), collaborating with various financial institutions to explore the role of tokenized currencies in cross-border transactions [2][3]. - The second phase of the e-HKD+ pilot program emphasizes three themes: settlement of tokenized assets, programmability, and offline payments, with a specific focus on the interaction between new digital currencies and money market funds (MMFs) [3]. Group 2 - The Hong Kong Legislative Council passed the Stablecoin Ordinance, making Hong Kong the first jurisdiction to establish a comprehensive regulatory framework for fiat-backed stablecoins, effective from May 30, 2024 [3][4]. - The Stablecoin Ordinance introduces a licensing system for stablecoin issuers and allows the HKMA to facilitate the application of blockchain technology in the financial sector [4]. - Several participants, including JD Coin Chain Technology (Hong Kong) and Standard Chartered Bank (Hong Kong), are set to engage in sandbox testing for stablecoin issuance, focusing on cross-border payments and retail applications [4]. Group 3 - Ant International has signed a strategic cooperation memorandum with Deutsche Bank to develop innovative solutions in global treasury management and cross-border payments, including tokenized deposits and stablecoins [5]. - Ant International plans to apply for stablecoin licenses in Singapore and Hong Kong, as well as seek permission in Luxembourg to enhance its blockchain operations [6].