Hong Kong A-shares of digital currency concept stocks surged in the afternoon, and Morgan Stanley believes that cross-border payment channels are a mild benefit for Hong Kong financial stocks

In the afternoon, financial stocks in the Hong Kong and A-share markets surged collectively, with A-share companies Forms Syntron, Lakala, and ADTec rising by 18%, 14%, and 13% respectively. In the Hong Kong market, ZA ONLINE and YEAHKA rose by over 6%. On the news front, the Cross-Border Payment System officially launched on June 22, marking the interconnection between the mainland and Hong Kong's rapid payment systems, allowing residents of both regions to conduct real-time cross-border remittances. Morgan Stanley believes that the Cross-Border Payment System is a mild positive for financial stocks. Considering the interest rate differential between the mainland and Hong Kong, it is believed that the Cross-Border Payment System will attract more liquidity to Hong Kong, supporting trading volumes in the Hong Kong stock market. It is also seen as beneficial for insurance stocks, as this mechanism can simplify the purchasing process for insurance in Hong Kong. Additionally, with the Hong Kong government approving legislation for stablecoins, brokerages have sparked a research boom on stablecoins, with at least 16 brokerages publishing over 24 research reports focusing on stablecoins in just the past week. Amid the wave of cross-border payment innovations and deepening financial openness, the "Cross-Border Payment System" and stablecoins have become new engines for industry development. Notable products and their price changes as of the time of writing: The "first flag bearer of the new market" with dual support from finance and technology: the Financial Technology ETF from Huaxia, +4.55%, which includes Tonghuashun, Eastmoney, Hang Seng Electronics, Runhe Software, and Newland. The representative of the Hong Kong stock bull market: the Hong Kong Stock Connect Financial ETF, +1.68%, which packages Hong Kong-listed companies in banking, finance, and securities, encompassing leading commercial banks such as China Construction Bank, Industrial and Commercial Bank of China, Bank of China, and China Merchants Bank, as well as insurance giants China Ping An and China Life, and leading brokerage CITIC Securities