Understanding the Market | The Stablecoin Boom Ignites Brokerage Stocks, SOUTH CHINA FIN rises over 90% in the afternoon, and CC SECURITIES increases by more than 70%
Brokerage stocks surged significantly due to the stablecoin boom, with SOUTH CHINA FIN rising 94.2%, CC SECURITIES up 64.14%, and WELL LINK SEC gaining 49.36%. The Hong Kong "Stablecoin Regulation" will take effect in 2025, and brokerages such as Guotai Junan International have been granted permission to expand their licenses to provide virtual asset trading services. Market trading volume has rebounded, increasing the attractiveness of the securities sector, and future attention will be focused on the impact of major domestic and international events and high-level meetings
According to Zhitong Finance APP, brokerage stocks are experiencing strong gains. As of the time of writing, South China Financial (00619) is up 94.2%, trading at HKD 0.435; Zhongzhou Securities (01375) is up 64.14%, trading at HKD 3.25; Well Link Securities Holdings (08350) is up 49.36%, trading at HKD 0.233; Xingzheng International (06058) is up 32.63%, trading at HKD 0.63; Guolian Minsheng (01456) is up 18.44%, trading at HKD 5.46; and Guotai Junan International (02611) is up 12.34%, trading at HKD 15.24.
On the news front, the "Stablecoin Regulation" in the Hong Kong Special Administrative Region will officially take effect on August 1, 2025. Previously, Guotai Junan International, Tianfeng International Securities, and other brokerages have been officially authorized to expand their license business scope to provide virtual asset trading services to professional investors. Great Wall Securities believes that after July, major domestic and international events will enter a period of intensive interweaving, and grand narratives may be key factors determining whether the market may strengthen further. In the short term, the acquisition of stablecoin-related licenses by Guotai Junan International has attracted widespread market attention. Recent market trading volume has rebounded, which may enhance the pricing attractiveness of the securities sector. In terms of trading rhythm, the market may need to focus on internal issues in stages, specifically looking at the tone set by high-level meetings in July, as well as anticipated major meetings and significant events.
Additionally, on July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a central group study meeting to discuss the development trends and response strategies of cryptocurrencies and stablecoins. Hualong Securities stated that as the "players" in stablecoins expand, global competition in on-chain finance is expected to accelerate and become "intensely heated." At the same time, crypto assets will shift from primarily anchoring U.S. Treasury bonds to anchoring diversified assets. Using RWA as a bridge, financial innovation will better enhance asset investment activity and improve liquidity, with stablecoins expected to play an important role as a payment tool in this process
