Changes in Hong Kong stocks | Zhongan Online (06060) rose more than 8% in a month, and the stablecoin law significantly benefits Zhongan Bank's virtual asset business

The Zhitong Finance App learned that Zhongan Online (06060) has increased by more than 8%, and the cumulative increase during the month has already exceeded 50%. As of press release, it rose 6.63% to HK$17.06, with a turnover of HK$415 million.

According to news, the Hong Kong Legislative Council passed the Stablecoin Bill in the third reading on May 21, 2025. A compliant Hong Kong stablecoin is expected to be officially launched before the end of this year. Guojin Securities pointed out that Zhongan Bank (Zhongan holds 43.43% of its shares) has advanced virtual asset business layout and is expected to benefit. Zhongan Bank is the first digital bank in Hong Kong to provide reserve bank services for stablecoin issuers. It is closely linked to digital asset exchanges and stablecoin issuers, and further cooperation is expected in the future.

DBS Bank previously released a research report stating that it reaffirmed the “buy” rating for Zhongan Online. With a target price of HK$20 for 12 months, it is believed that Zhongan Insurance's valuation is historically low. As the insurance technology ecosystem continues to improve and the value of digital banking gradually becomes apparent, Zhongan Online is expected to usher in an increase in performance and valuation. The bank pointed out that as the first profitable digital bank in Hong Kong, DBS gave a valuation of 2 billion US dollars. Based on Zhongan's 43.43% shareholding ratio, the corresponding value is approximately US$887 million (approximately HK$6.9 billion), which is equivalent to 39% of the current market value. If this part of the value is excluded, the valuation of the core financial insurance business is only 0.7 times PB, which is a significant discount compared to the 1.2 times average value of traditional insurers.