Investment Rating - The report maintains a "Recommend" rating for the non-bank financial industry, specifically focusing on Circle and its stablecoin operations [1]. Core Insights - The report provides a comprehensive analysis of Circle, the issuer of the USDC stablecoin, highlighting its compliance, technology, and ecosystem. It contrasts Circle's operational model with that of Tether, the largest stablecoin issuer, and discusses Circle's competitive advantages and future prospects [5][6]. Summary by Sections Industry Overview - As of July 2025, the non-bank financial sector comprises 71 companies with a total market capitalization of approximately 73,991.69 billion CNY, representing 6.91% of the market [1]. Performance Metrics - The report notes that Circle's USDC has a market share exceeding 20%, while Tether holds over 60% as of Q1 2025. Circle's total revenue and reserve income grew by 16% year-on-year, but net profit declined by 42% due to high operational costs [4][6]. Core Business Model Analysis - Circle's partnership with Coinbase is pivotal for USDC's distribution, with a circulation of 43.9 billion USD and 4.3 million active wallets as of December 2024. The revenue-sharing model between Circle and Coinbase is designed to enhance liquidity and market penetration [9][10]. - BlackRock plays a crucial role in Circle's ecosystem, managing a significant portion of USDC's reserve assets and providing regulatory credibility. This partnership enhances USDC's market trust and stability [11][12][16]. Governance Structure - Circle's governance has evolved through strategic transformations, including a shift from a payment tool to a stablecoin issuer and ecosystem builder. Key milestones include the establishment of the Centre alliance with Coinbase and the successful IPO in June 2025 [22][24][25]. Competitive Landscape - Circle's competitive edge lies in its compliance and transparency compared to Tether. The report emphasizes Circle's focus on regulatory adherence and its robust KYC and AML frameworks, which are critical in the stablecoin market [18][21]. - The report also highlights the potential for operational improvements, particularly in diversifying revenue streams and reducing reliance on a single income source [23][28]. Financial Performance - Circle's financial structure shows a heavy reliance on reserve income, primarily from U.S. Treasury securities. The report indicates that operational costs are a significant burden, with employee compensation constituting a large portion of total expenses [32][37]. Management Team - The report outlines the qualifications and roles of Circle's core management team, emphasizing their experience in technology, finance, and regulatory affairs, which are essential for navigating the complex landscape of digital assets [34][35].

Core Viewpoint - Stablecoins are becoming a core variable in reshaping the global financial landscape through a dual-driven model of "technological innovation + regulatory development" [1] Group 1: Stablecoin Regulation and Market Impact - The implementation of the "Stablecoin Ordinance" in Hong Kong is expected to solidify and enhance its status as an international financial center, with significant changes anticipated in the financial market ecosystem [2] - The ordinance features a "dual-track" regulatory approach, allowing only approved stablecoin issuers to offer retail stablecoins, while unapproved stablecoins can only be traded among professional investors [6][7] Group 2: Technological Maturity and Financial Inclusion - Stablecoins are breaking down traditional financial barriers, with USDT (Tether) having circulated globally for over 10 years, significantly contributing to financial inclusion [4] - In Africa, approximately 60% of the population lacks bank accounts, yet they can access stablecoin systems via mobile wallets, enabling "account-free cross-border payments" [4] - For Chinese cross-border e-commerce, stablecoins like USDT are becoming essential tools for trade facilitation, with a significant increase in their usage among small merchants [4] Group 3: Role of Hong Kong's Digital Currency Exchanges - HashKey Exchange is positioned as a key player in Hong Kong's virtual asset trading landscape, acting as a "two-way connector" between fiat and stablecoin systems [6][7] - The exchange is implementing stringent KYC and anti-money laundering mechanisms to ensure compliance while facilitating stablecoin transactions [7] Group 4: Pathways for RMB Stablecoin Implementation - The discussion around the impact of the "Stablecoin Ordinance" on the internationalization of the RMB has led to proposals for a "three-phase strategy" for the implementation of RMB stablecoins [8] - The strategy includes issuing offshore RMB stablecoins initially for institutional clients, followed by integration with free trade account systems in specific regions, and eventually launching onshore RMB stablecoins [10]

Group 1: Su Chao and Cultural Tourism Consumption - The "Su Chao" football league has significantly boosted cultural tourism consumption in six host cities, with a total increase in consumption [1] - Over 180,000 fans attended matches, achieving attendance rates comparable to professional football leagues [1] - From June 2 to June 8, reservations for scenic spots in Jiangsu Province increased by 305% [1] - A-share football concept stocks surged, with multiple stocks hitting the limit up, including a five-day consecutive rise for Guochuang Turf and three consecutive 20% rises for Jinling Sports [1] Group 2: Changan and Dongfeng Restructuring - Changan Automobile and Dongfeng Automobile announced a pause in their restructuring plans due to the separation of Changan's indirect controlling shareholder [2][3] - The restructuring speculation had previously led to a surge in the capital market, but the current status remains unclear [3] - The automotive industry has seen a trend towards consolidation, indicating a maturation of the market [3] Group 3: National Standards for Intelligent Driving Assistance - A new mandatory national standard for intelligent connected vehicles' driving assistance systems is set to be established, with a project duration of 22 months [4][5] - The standard will cover technical requirements for motion control, driver monitoring, system safety, and testing methods [4] Group 4: Circle's IPO Performance - Circle, the issuer of the USDC stablecoin, saw its stock price surge by 168.48% on its first trading day, closing at $83.23 with a market cap exceeding $18 billion [6][7] - The company experienced a 25-fold oversubscription for its IPO, increasing the number of shares issued from 32 million to 34 million [6] - USDC's circulation has grown by 40% over the past year, significantly outpacing USDT's 10% growth [6] Group 5: Guangdong Government Investment Fund Regulations - Guangdong Province has introduced new regulations for government investment funds, stipulating that management fees must be paid from fund earnings rather than principal [8][9] - This change could lead to challenges for fund managers if the funds do not generate profits, potentially eliminating their primary income source [9] Group 6: South Korea's New President - Lee Jae-myung was inaugurated as South Korea's president, winning with 49.42% of the vote, ending a period of political uncertainty [10][11] - His administration aims to focus on developing emerging industries like AI and fostering a fair economy while navigating challenges in economic recovery and social cohesion [11] Group 7: US Steel and Aluminum Tariffs - The US has raised tariffs on steel and aluminum imports from 25% to 50%, citing national security concerns [12][13] - This move has faced criticism for potentially harming the US manufacturing sector and disrupting global supply chains [12] Group 8: Trump and Musk's Public Dispute - A public feud has erupted between former President Trump and Elon Musk, triggered by legislative changes affecting electric vehicle tax credits [13][14] - The conflict reflects deeper tensions between the two figures, impacting Tesla's stock price, which fell by 14.26% following the dispute [14]