Zhitong Hong Kong Stock Exchange Unravels | The “Stablecoin Ordinance” officially became law due to the negative fermentation of the Dragon Boat Festival

[Anatomy Dashboard]

Taking on the inertia of falling at the end of last month, Hong Kong stocks opened sharply lower on the first day of June. Fortunately, they recovered quite a bit later. The final drop was 0.57%. The amount of energy is only 145.2 billion. It can be seen that going south already accounts for quite a large share of capital.

During Dragon Boat Festival, negative news continued to ferment. The second round of negotiations between China and the US mentioned on Friday has come to a standstill. A Ministry of Commerce spokesperson mentioned that after the economic and trade talks in Geneva, the US side introduced a number of additional discriminatory restrictions against China, including issuing AI chip export control guidelines, stopping chip design software (EDA) sales to China, and announcing the cancellation of visas for Chinese students. These practices seriously violate the January 17 call agreement between the two heads of state, seriously damage the existing consensus in the Geneva economic and trade talks, and seriously damage China's legitimate rights and interests. It can be seen that the US side is responsible.

US President Trump waved tariffs on the EU: starting June 4, import tariffs on steel and aluminum will be raised from 25% to 50%. A European Commission spokesman said that the EU is ready to take countermeasures against the increase in US tariffs. Trump's move is actually making chips for the US-Germany talks. According to media reports, Germany's new Chancellor Mertz will meet with Trump at the White House on June 5 to discuss key topics such as the Russian-Ukrainian war, the situation in the Middle East, and trade policy. Mertz's current trip to Washington was a key test of how Europe can balance cooperation and confrontation. It is also possible to indirectly peek into the direction of Sino-European relations.

On June 1, Ukraine launched a drone attack on the military base in the town of Sredny in Russia's Siberia region. According to Ukrainian intelligence sources and video footage, 41 Russian fighter planes, including Tu-95, Tu-22 bombers, and A-50 early-warning aircraft, were hit. The data is not necessarily accurate, but it shows that the next negotiations between Russia and Ukraine will not be so smooth, and what they cannot get on the battlefield will be even less accessible at the negotiation table. COMEX gold futures rose to $3330 intraday. Tongguan Gold (00340) surged more than 18%, Chifeng Gold (06693) rose 5.77%, and Lingbao Gold (03330) rose nearly 4%.

New World Development (00017) recently announced that, in accordance with the terms and conditions of each relevant perpetual securities section 4 (d), the company has notified all relevant perpetual securities holders that it has chosen to defer the distribution of relevant perpetual securities interest until their respective next distribution payment dates.

Stablecoins, which were active earlier, are back. The Hong Kong Special Administrative Region Government published the “Stablecoin Ordinance” in the Gazette on May 30, which means that the “Stablecoin Ordinance” has officially become law. On May 20, the US Senate officially passed the “GENIUS Act to Guide and Establish US Stablecoin Innovation” (GENIUS Act) by 66 votes to 32. In June, the US had more than 6 trillion dollars of debt in urgent need of replacement. The strong point of this “genius” bill is that it proposes a realistic implementation plan for this century's bonds. Stablecoins will use US bonds as their main underlying asset, becoming an important tool for replacing debt and mitigating debt risks.

Taking USDT as an example, the actual underlying assets are 90% US bonds and 10% of the US dollar, which are anchored to the US dollar 1:1. At the same time, the efficiency of currency transactions has been improved through blockchain technology on-chain circulation, and it has higher currency liquidity than the US dollar. Stablecoins are a big piece of cake, and early introduction benefits. Next, we also need to attract a batch of international capital to help internationalize the RMB. The relevant individual stock, Zhongan Online (06060), which was mentioned last time, rose more than 9%, while another cross-border transaction, the transfer card (09923), surged nearly 40%.

Regarding the internal affairs of the automobile industry, the China Automobile Association and the Ministry of Industry and Information Technology have spoken out one after another: take necessary regulatory measures and resolutely maintain a fair and orderly market environment. The photovoltaic industry is a typical example. From the perspective of survival of the fittest, only by eliminating a number of ecosystems will improve. Currently, the main investment in car companies is to look at sales data. On June 1, four new car companies, Zero Run, Ideal, Xiaopeng, and NIO, announced delivery data for the previous month as scheduled. Among them, Zero Sports has been at the top of the delivery list of new car builders for three consecutive months; in May, the delivery volume reached a new high of 4,5067 vehicles, an increase of over 148.1% over the previous year. This achievement was achieved thanks to Zero Sports Auto's product layout and pricing strategy. Zero Run (09863) rose more than 3%.

China has added new members to its unilaterally visa-free “circle of friends.” The Chinese side has piloted a visa-free policy for ordinary passport holders from Brazil, Argentina, Chile, Peru, and Uruguay. From June 1, 2025 to May 31, 2026, ordinary passport holders from the five countries mentioned above can visit China for no more than 30 days to do business, travel, visit family and friends, exchange visits, and transit through China without a visa. This is the first time that China's visa-free policy has been extended to countries in Latin America and the Caribbean. So far, the number of countries coming to China under the unilateral visa-free policy has been extended to 43.

Last time, aviation and dining were introduced, and indirect benefits to gaming were also mentioned. This time, gaming is once again strengthening. Dahua Jixian published a report stating that Macau's gaming revenue in May 2025 reached MOP 212 billion, an increase of 5% over the previous year and 12% month-on-month. Macau's gaming revenue in May exceeded market consensus expectations by 3%, recovering 82% of 2019 levels, making it the strongest month so far in 2025, and the highest since customs clearance resumed in January 2023. Sands China (01928), Wynn Macau (01128), and Galaxy Entertainment (00027) all increased 2%.

Alibaba Pictures (01060) is quite eye-catching today. The main speculation is the company's restructuring and transformation. The board of directors proposed changing the company name from Alibaba Pictures to Damai Entertainment. Subsequent companies will reduce film investment because this area itself is unstable, clarify its positioning, and then concentrate resources on the two major high-growth directions of offline performances and IP derivation. Today's increase is over 7%.

[Section Focus]

In May 2025, national and local governments issued a number of hydrogen energy policies. The Ministry of Industry and Information Technology approved 7 hydrogen energy industry standards, all of which will be implemented on November 1, 2025. The National Energy Administration initiated the 2025 project application for the “Hydrogen Energy Technology” key project. Various localities have also issued relevant policies, such as the Zhejiang Zhapu Economic Development Zone focusing on hydrogen energy equipment and other fields to promote the construction, operation and use of hydrogen fueling stations; the Shuicheng District of Guizhou relies on coal coking projects to promote the demonstration application of hydrogen energy in the transportation field; and Mengzhou, Henan supports hydrogen energy enterprise innovation and subsidizes hydrogen energy industry projects. Furthermore, starting June 1, Shanxi Province implemented toll subsidies and uniform payments for hydrogen trucks passing through domestic highways. The trial period is 2 years.

Main varieties: Guofu Hydrogen Energy (02582), Reshape Energy (02570), Weichai Power (02338), Dongyue Group (00189).

[Individual Stock Mining]

Fudan, Shanghai (01385): The Lujiazui Forum brought new expectations that the new generation of FPGAs is expected to enter the formal mass production stage.

The 2025 Lujiazui Forum will be held in Shanghai from June 18 to 19. The theme is “Open Financial Cooperation and High-Quality Development in the Changing Global Economy”. During the forum, the central financial management department will announce a number of major financial policies.

Comment: The company will use this platform to strengthen cooperation with international chip design companies and scientific research institutions, introduce advanced technology and talents, expand overseas market channels, and enhance its competitiveness in the international market. In 2024, the company achieved operating income of 3,590 billion yuan, a year-on-year increase of 1.53%; realized net profit to mother was 573 million yuan, a decrease of 20.42% over the same period of the previous year; non-net profit deducted to mother was about 464 million yuan, a decrease of 18.92% over the same period last year. According to the market situation, the company adjusted the sales prices of some products in due course to consolidate or expand its market share. The overall gross margin of the product was affected by the prices of some product lines, down 5.26 percentage points from the previous year. Market sentiment is expected to recover in 2025, and gross margins will begin to recover.

Security chips have achieved good results. The company is the first domestic security chip supplier to obtain WPC certification. The sales volume of wireless charging safety modules is gradually rising. After hard work, automotive SE has entered Tier 1 of car companies, and mass production is expected to continue.

Vehicle MCU products can be used in car body control and comfort systems, and sales have exceeded 10 million units in the field of automotive electronics. The layout in the market segment will help the company further enrich its multi-product line layout and accelerate the pace of mass production. The company has dozens of products in four series: 10 million gate level FPGA, billion gate level FPGA, 1 billion gate level and PSoC, and is equipped with EDA tools for the whole process.

We are currently promoting next-generation FPGA and PSoC products based on 1xnm FinFET advanced manufacturing processes for application scenarios such as computer vision, machine learning, and high-speed digital processing, and for industries such as smart cockpits, video surveillance, medical imaging, and network communications. A variety of next-generation FPGA products have been tested on samples. There are small-batch products for customer verification and use, and customer feedback is good. The next generation of FPGAs is expected to move from small batches to formal mass production in 2025.