Recently, the United States and Hong Kong, China have almost simultaneously promoted stablecoin legislation. Stimulated by good news, Bitcoin broke through $110,000 to set a record high.
At the same time, on May 29, ZhongAn Online, a Hong Kong stock, rose 31.56% in a single day; in the A-share market, Langxin Group, Lakala, Xiongdi Technology, Sifang Jingchuang, and Tianyang Technology all achieved a 20% daily limit, and many other stocks such as Xin Guodu, Feitian Chengxin, and Hengbao Shares rose sharply.
From the data at the end of the first quarter, public funds have "ambushed" these stocks. Taking ZhongAn Online, which is rarely heavily held by public funds (excluding passive products), as an example, Guofu New Trend has newly entered the stock as the fourth largest heavily held stock, becoming the only public fund product with a heavy position in the stock at the end of the first quarter. In the previous few quarters, some funds briefly held a heavy position in the stock and then cleared it.
In the A-share market, at the end of the first quarter, Langxin Group was heavily invested in three products managed by Chen Ying, chief investment officer of Golden Eagle Fund. However, the heavy investment in this stock may be more based on the AI perspective; Jingbeifang is also newly held by several fund managers, such as Zhai Xiangdong, Nong Bingli, Hu Yibin, Yang Fei, etc. It is worth mentioning that at the end of the first quarter, although no public offering funds heavily invested in Xin Guodu, one of the "Four Little Dragons of Digital Currency", the National Social Security Fund 604 portfolio increased its holdings of the stock to 10 million shares.
1 Digital Currency Concept Explosion
Recently, the Hong Kong Legislative Council passed the "Stablecoin Bill" to establish a licensing system for legal currency stablecoin issuers in Hong Kong. This marks that Hong Kong has officially included the virtual asset of stablecoins into the legal regulatory system. It is expected that before the end of this year, institutions can apply to the HKMA to become compliant stablecoin issuers. The US government has also stepped up efforts to promote stablecoin legislation. On May 28, the US Senate passed the procedural motion of the 2025 United States Stablecoin Innovation Guidance and Establishment Act (GENIUS Act), attempting to provide federal supervision for dollar-pegged stablecoins. The above news began to ferment in the A-share and Hong Kong stock capital markets on May 29. As of the close, ZhongAn Online, a Hong Kong-listed company, rose 31.56% in a single day, with a share price of 21.05 yuan. During the trading session on April 9, the stock price once fell to 9.54 yuan. More than a month later, its share price has doubled.
In actual fact, ZhongAn Bank, in which ZhongAn holds a 43.43% stake, is the first digital bank in Hong Kong to provide reserve bank services for stablecoin issuers, and the first bank in Asia to provide cryptocurrency trading services for retail users. The company has close ties with digital asset exchanges and stablecoin issuers, and is expected to launch more cooperation in the future.
The concept of digital currency in the A-share market also broke out on the same day. As of the close, the Wind Digital Currency Concept Index rose by 7.66%, and Lakala, Xiongdi Technology, Sifang Jingchuang, and Tianyang Technology all achieved a 20% daily limit. In addition, many stocks such as Xin Guodu, Feitian Chengxin, Hengbao Shares, Shenzhou Information, Jingbeifang, Hailian Jinhui, and Cuiwei Shares rose sharply.
Among them, as an important trading scenario for stablecoins, RWA (i.e. "real asset tokenization") has received widespread attention from the market, and Langxin Group and GCL Energy also both rose by the daily limit due to the "RWA concept". Previously, the two companies had cooperated with Ant Digits to complete RWA financing of RMB 100 million and RMB 200 million respectively.
2 Aiming at the "right to mint digital currency"
Stablecoin is a digital currency pegged to other traditional assets such as legal tender or commodities. It is often seen as a bridge between traditional finance and cryptocurrency. It has the potential to facilitate faster and cheaper transactions while reducing price volatility and related risks.
Whether it is the United States, Hong Kong or the European Union, major financial centers are building their own digital currency systems to ensure that currencies have greater monetary control in the digital financial era.
"Stablecoin transactions are more efficient than traditional European and American banks, especially in cross-border payments." Guohai Securities analyzed that compared with traditional bank wire transfers that take several days to complete, stablecoin transfer transactions often only take a few minutes to complete. In addition, the transfer fee of stablecoins is low, and the fee depends on the network situation (for example, USDT is usually only a few dollars), while the handling fees of some payment systems are charged proportionally and at a higher rate.
Hong Kong Legislative Council member Wu Jiezhuang tweeted that the passage of the above-mentioned bill in Hong Kong is an important step for it to become an international Web3 center. Hong Kong's stablecoin is based on legal tender as the underlying asset. This approach directly points to the "digital currency minting right". By issuing digital currencies linked to legal tender, it has greater monetary influence in the digital economy era.
At the same time, against the backdrop of the global de-dollarization rhetoric, stablecoins are becoming a "life-saving straw" for the US dollar, and will also accommodate some demand for US debt. At present, the stablecoin market size exceeds US$250 billion, and the underlying assets are mostly short-term US Treasury bonds, which are important holders of US Treasury bonds.
The Citibank report pointed out that stablecoins are the entrance to decentralized finance-tracking the growth of stablecoin issuance helps to determine the health and growth of the overall digital asset environment. Stablecoins can be regarded as a means of storing value without the inherent volatility of native tokens. Another potential use case is payment and cross-border transactions. As a medium of exchange, the use case of stablecoin payments is growing, and regulatory clarity can pave the way for wider adoption of payments.
However, stablecoins are not without challenges-issues such as insufficient asset support, lack of transparency, and potential systemic risks still exist.
3 These funds are ambushing in advance
Under normal circumstances, public fund managers are optimistic about digital currencies and often realize their layout ideas by holding or increasing their positions in listed companies related to digital currencies.
Take ZhongAn Online, which is rarely heavily held by public funds (excluding passive products), as an example. As of the end of the first quarter, Guofu New Trend, co-managed by Shen Zhuxi and Gao Yanyun, newly entered the stock as the fourth largest holding, with a position of 9.40%. This is also the only public fund product with a heavy position in the stock at the end of the first quarter.
However, as of May 28, against the background of ZhongAn Online's stock price surge since April 8, the net value of the product only rose slightly by 0.18%.
At the end of the second quarter of 2024, Huatai-PineBridge New Economy Shanghai-Hong Kong-Shenzhen and Huatai-PineBridge Asia Enterprises, headed by He Qi, and GF Financial Real Estate Selection, headed by Ran Yuhang, all held a large position in the company, but all faded it out of the heavy holdings in the third quarter of last year. China Merchants Anze Wenli 9-month holding briefly held a large position in ZhongAn Online in the third quarter of last year, and also chose to clear the position in the fourth quarter of last year.
In the A-share market, Langxin Group also has a large position in public funds. At the end of the first quarter, the three products managed by Chen Ying, chief investment officer and general manager of the growth investment department of Golden Eagle Fund, all held a large position in the product, among which Golden Eagle Core Resources and Golden Eagle Technology Zhiyuan were increased holdings, with the number of shares held being 2.77 million and 970,000 shares respectively, and Golden Eagle National Emerging was a new entrant, with the number of shares held reaching 1.77 million shares.
Chen Ying holds a large position in Langxin Group, or more from the perspective of AI. He mentioned in the first quarter report that AI is still the main driving factor of the consumer electronics industry, especially in terms of innovative products. The combination of AI technology and traditional industries has formed vertical applications of artificial intelligence in various industries, which has strong explosiveness and broad growth space.
Except for Chen Ying, the other public funds that hold a large position in this stock are mostly index increase and quantitative products.
At the end of the first quarter, Beijing North was also newly held by several fund managers.
For example, Zhai Xiangdong's China Merchants Advantage Enterprise, Nong Bingli's Invesco Great Wall Quality Evergreen, and Hu Yibin's Hua'an Media Internet have all newly entered the stock, holding 6 million shares, 5.1666 million shares, and 1.6445 million shares respectively; Yang Fei's Penghua Innovation Drive and Penghua High-end Equipment One-Year Holding have also newly entered the stock as the top ten heavy holdings, holding 1.1582 million shares and 515,900 shares respectively; Wang Xin's CSOP Digital Economy Theme and CSOP Dynamic Balance, and Xiong Zheying's Hua'an Advanced Manufacturing have also newly entered the stock as heavy holdings.
As a company dedicated to providing information technology services (ITO) and business process outsourcing services (BPO) to domestic and foreign financial institutions, Beijing North's revenue scale in 2024 hit a record high. In terms of cutting-edge technology layout, the company has achieved large-scale application of artificial intelligence, big data and digital currency. In 2024, the company's artificial intelligence and big data innovative products achieved revenue of 79.59 million yuan, accounting for 1.72% of total revenue, a year-on-year increase of 65.29%; smart customer service and consumer finance precision marketing achieved revenue of 820 million yuan, accounting for 17.69% of total revenue, a year-on-year increase of 37.46%.
According to the financial report, the company's performance in 2024 benefited from its deep participation in the construction of the financial institution's information innovation system, while forward-looking layout and implementation of innovative technology products such as artificial intelligence and big data. The company provides technical support and testing services for the construction of the bank's core system, involving core business scenarios such as credit management, cash management, and payment settlement.
It is worth mentioning that at the end of the first quarter, although no public offering funds held a large position in New Capital, one of the "Four Little Dragons of Digital Currency", the National Social Security Fund 604 portfolio increased its holdings of the stock to 10 million shares.
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