Zhitong Hong Kong Stock Early Knowledge | The Hong Kong Monetary Authority will announce a summary of the "Stablecoin Issuer Licensing System" next week. Morgan Stanley predicts that the Federal Reserve will not cut interest rates this year

【Today's Headlines】

Eddie Wu, President of the Hong Kong Monetary Authority: Summary of the "Stablecoin Issuer Licensing System" to be Announced Next Week

Eddie Wu, President of the Hong Kong Monetary Authority, stated that he has noticed recent scams involving the promotion of digital assets and stablecoins, causing losses to the public. The "Stablecoin Ordinance" took effect on August 1, and according to the ordinance, promoting any unlicensed stablecoin to the public in Hong Kong is illegal. Wu also mentioned that there have been many rumors regarding the application process recently, and the Monetary Authority will announce a summary of the "Stablecoin Issuer Licensing System" next week, which will outline the arrangements for accepting and processing license applications. Interested parties are advised to stay tuned.

【Market Outlook】

All Three Major U.S. Stock Indices Closed Higher, Most Popular Chinese Stocks Rose

Overnight, the U.S. stock market closed with the Dow Jones Industrial Average rising by 507.85 points to close at 45010.29 points, an increase of 1.14%; the S&P 500 rose by 49.29 points to close at 6358.91 points, an increase of 0.78%; and the Nasdaq Composite rose by 127.33 points to close at 21020.02 points, an increase of 0.61%. Most large tech stocks rose, with Meta up over 1%, Amazon and Microsoft slightly up, Netflix down over 1%, and Google and Apple slightly down. Most popular Chinese stocks rose, with the Nasdaq Golden Dragon China Index closing up 0.75%, iQIYI up over 4%, and Pinduoduo up nearly 3%. The Hang Seng Index ADR fell, closing at 25438.94 points, down 99.13 points or 0.39% compared to the Hong Kong close.

【Hot Topics Ahead】

Goldman Sachs and Bank of NY Mellon Enter $71 Trillion Tokenized Currency Market

According to media reports on Wednesday, Goldman Sachs and Bank of NY Mellon are about to announce the creation of a tokenized currency market fund purchasing channel for institutional investors. Executives from both institutions revealed that clients of the world's largest custodian bank, Bank of NY Mellon, will be able to invest in money market funds whose ownership records are on Goldman Sachs' blockchain platform. This project has attracted fund giants such as BlackRock, Fidelity Investments, Federated Hermes, and the asset management subsidiaries of both banks. Several major Wall Street banks believe that after U.S. President Trump signed the GENIUS Act last week to establish a regulatory framework for U.S. stablecoins, tokenizing the $71 trillion money market will be the next major breakthrough in the digital asset space. Unlike dollar-pegged stablecoins, tokenized money market funds will provide returns to holders, making them highly attractive for hedge funds, pension funds, and corporate cash management.

Morgan Stanley's Bold Prediction: No Rate Cuts from the Federal Reserve This Year, May Extend to March 2026

According to Zhitong Finance APP, ahead of the Federal Reserve's July Federal Open Market Committee (FOMC) meeting, Morgan Stanley released its monetary policy forecast. The New York Fed collects market expectations regarding monetary policy and economic indicators before each FOMC meeting. In the latest report, Morgan Stanley briefly outlined its responses India resumes issuing tourist visas to Chinese citizens from July 24, flight search volume surges instantly

The Indian Embassy in China announced on Weibo that starting from July 24, 2025, Chinese citizens can apply for tourist visas to visit India. According to data from Qunar Index, the flight search volume for tickets to Delhi, India, on the Qunar platform surged instantly, reaching over 10 times at its peak. Among them, the flight search volume from Hong Kong to Delhi was the highest, with an average tax-inclusive price of 862 yuan. Data from the Ctrip visa platform shows that since the beginning of this year, the volume of business visas to India has increased by 63% year-on-year. Previously, in 2019, both tourist and business visas to India had positive year-on-year growth.

The average transaction price of n-type polysilicon feedstock increased by 12.23% compared to last week

The Silicon Industry Branch of the China Nonferrous Metals Industry Association released the domestic solar-grade polysilicon prices, with the transaction price of n-type feedstock reaching a maximum of 49,000 yuan/ton, a minimum of 45,000 yuan/ton, and an average of 46,800 yuan/ton, up 12.23% week-on-week. The transaction price of n-type granular silicon reached a maximum of 4.50 yuan/ton, a minimum of 4.30 yuan/ton, and an average of 4.40 yuan/ton, up 7.32% week-on-week. This involves Hong Kong stocks GCL-Poly Energy Holdings Limited (03800) and Xinte Energy (01799).

National Development and Reform Commission: Pig farming profits slightly reduced, average profit per head is less than 50 yuan

The enthusiasm for pig farming has increased, leading to a rise in supply, while downstream demand has decreased due to high temperatures and school holidays. Under the background of oversupply, pig prices have once again fallen below 15 yuan/kg, and pig farming profits have slightly decreased again. Data disclosed by the Price Monitoring Center of the National Development and Reform Commission shows that in the third week of July 2025, the national pig ex-farm price was 14.96 yuan/kg, a decrease of 0.53% from the previous period. This week, the national pig feed price ratio was 5.50, down 0.54% week-on-week. Based on current prices and costs, the average profit per head for pig farming in the future fattening model is estimated to be 48.96 yuan.

The General Administration of Customs issues the "Interim Measures for the Tax Collection and Administration of Duty-Free Goods Processed and Added Value in Hainan Free Trade Port"

According to Zhitong Finance APP, on July 23, the General Administration of Customs announced Announcement No. 158 of 2025 (regarding the release of the "Interim Measures for the Tax Collection and Administration of Duty-Free Goods Processed and Added Value in Hainan Free Trade Port"). It mentioned that for goods produced by encouraged industries within the Hainan Free Trade Port that have an added value of 30% or more from imported materials, import tariffs will be exempted when entering the mainland from the Hainan Free Trade Port, while import value-added tax and consumption tax will be levied according to regulations (hereinafter referred to as the duty-free policy for processed added value). This involves Hong Kong stocks in the Hainan closure sector.

Hong Kong Stock Exchange (00388): New stock financing in Hong Kong reached $14.1 billion in the first half of the year, a year-on-year increase of 695%

According to Zhitong Finance APP, the Hong Kong Stock Exchange released the "Review of the Hong Kong Equity Financing Market in the First Half of 2025." In the first half of 2025, the scale of new stock issuance in the Hong Kong market saw significant growth According to Dealogic's statistics, the financing amount for new stocks in Hong Kong reached USD 14.1 billion in the first half of 2025, a 695% increase compared to the same period in 2024, far exceeding the global new stock financing growth rate of 8%. Investor sentiment has improved, and a large number of high-quality companies are raising funds through the Hong Kong market, driving significant growth in the Hong Kong equity financing market. Despite the complex global geopolitical environment, the Hang Seng Index leads globally. The investment enthusiasm of international investors and mainland Chinese investors for Hong Kong stocks has driven the Hang Seng Index to rise by more than 20% during the period, with the average daily trading volume of Hong Kong stocks increasing by 82% year-on-year to HKD 240 billion.

State Grid Xin Yuan Holdings Limited Capital Increase Project Signed at 36.5 Billion (RMB)

On July 23, the capital increase and share expansion project of State Grid Xin Yuan Holdings Limited was successfully signed at the Beijing Property Exchange, with a capital increase scale of RMB 36.5 billion, creating the largest cash fundraising scale in the history of state-owned asset transactions. This is of great significance for promoting the high-quality development of pumped storage, accelerating the construction of a new power system, and supporting stable growth of the national economy. The capital increase and share expansion project received high attention and positive responses from investors. After public listing, the final investors were all large central state-owned enterprises and financial institutions with extensive influence and strong capital strength, including China Petroleum, China Life Insurance, Anhui Energy Group, Agricultural Bank Investment, Bank of Communications Investment, Bank of China Asset Management, CITIC Financial Asset, Haigang Life Insurance, Anhui Energy Capital, and Chuan Investment Capital.

Alibaba Cloud Bai Lian Launches Qwen3-Coder

On July 23, it was reported that the latest AI programming large model Qwen3-Coder API has been launched on Alibaba Cloud Bai Lian, with the minimum input and output prices per million tokens being RMB 4 and RMB 16, respectively, averaging 1/3 of Claude 4's price. At the same time, Alibaba Cloud Bai Lian also launched a limited-time discount of up to 50%, with prices for 128K-1M long context enjoying a 50% discount. This involves Hong Kong stock Alibaba (09988).

Times Electric (03898): Phase III Yixing IGBT Chip Production Line Expected to Reach Production Capacity Within the Year, Zhuzhou Production Line Expected to Start Operation by End of 2025

Times Electric (03898) stated on the interactive platform that the company's IGBT Phase I and Phase II production lines are already at full production. The Phase III Yixing IGBT chip production line is expected to reach its designed capacity within the year, while the Phase III Zhuzhou production line is scheduled to start construction in November 2024, with the main factory building expected to be topped off in May 2025. Equipment installation is expected to start in the second half of 2025, and the production line is expected to be operational by the end of 2025. This project involves 8-inch SiC wafers. The current production capacity for high-voltage devices for the power grid is sufficient. The company currently does not supply power devices to BYD.

Marco Digital Technology (01942) Plans to Subscribe to Preferred Shares of Stablecoin Payment Platform KUN

According to Zhitong Finance APP, Marco Digital Technology (01942) announced that on July 23, 2025, its indirect wholly-owned subsidiary, Zhongbao Hong Kong, entered into a share purchase agreement with the target company KUN International Group Limited, the target group (excluding the target company), affiliates of the target company, existing investors, and other investors Accordingly (including) the target company conditionally agrees to allocate and issue, while our company conditionally agrees to subscribe for 750,000 preferred shares, with a total consideration of USD 6 million (equivalent to approximately HKD 47.1 million).

Zhongchuang Xinhang (03931) issues profit warning, expects net profit in the first half of the year to increase by approximately 70% to 90% year-on-year

According to Zhitong Finance APP, Zhongchuang Xinhang (03931) announced that it expects to achieve a net profit of approximately RMB 709 million to RMB 793 million for the half-year period ending June 30, 2025 (reporting period), an increase of approximately 70% to 90% compared to the same period last year. In the same period last year, the group's net profit was approximately RMB 417 million.

UBTECH (09880) launches full-size industrial humanoid robot Walker S2 for smart manufacturing scenarios

UBTECH (09880) has launched the full-size industrial humanoid robot Walker S2 for smart manufacturing scenarios, featuring the iterative Group Brain Network 2.0 and self-developed intelligent technology Co-Agent specifically for industrial humanoid robots, constructing an industrial-grade humanoid robot AI dual cycle, achieving spiral evolution of autonomous operation and group collaboration. Standing at 1.76 meters tall, Walker S2 perfectly replicates humanoid gait walking and fine manipulation capabilities with its groundbreaking hardware design, and its globally pioneering autonomous battery swapping technology enables 24/7 uninterrupted operation.

Western Cement (02233) issues profit warning, expects interim profit attributable to shareholders to increase by approximately 80% to 100% year-on-year

According to Zhitong Finance APP, Western Cement (02233) announced that the group expects the profit attributable to the company's owners for the six months ending June 30, 2025, to increase by approximately RMB 696 million to RMB 774 million, compared to the profit attributable to the company's owners of approximately RMB 387 million for the six months ending June 30, 2024 (i.e., the same period last year), representing an increase of approximately 80% to 100%.

SenseTime-W (00020) plans to issue approximately 1.667 billion new Class B shares to Infinity Capital, netting approximately HKD 2.498 billion to further consolidate its position in the leading generative artificial intelligence field

According to Zhitong Finance APP, SenseTime-W (00020) announced that on July 23, 2025, the company entered into a subscription agreement with the subscriber (Infinity Capital Management Limited) and a placement agreement with the placement agent regarding the subscription matters. Accordingly, the company plans to issue a total of 1,666,667,000 new Class B shares to the subscriber, with a subscription price of HKD 1.50 per share, representing a discount of approximately 6.25% compared to the closing price of HKD 1.60 per Class B share reported on the Hong Kong Stock Exchange on July 23, 2025, for a total consideration of approximately HKD 2.5 billion.

【Stock Highlights】

Nine Dragons Paper (02689): New national standards expected to catalyze supply-side clearing in the industry In mid-July, industry leader Nine Dragons Paper (02689) announced another price increase, with an increase of 30 yuan/ton, affecting regions such as Dongguan and Quanzhou. This is the third round of price increase notices issued by the company since July 1 and July 10, with the main driving factor being rising costs.

Guotai Junan Securities Research pointed out that the new national standards have strengthened energy consumption restrictions, especially with a significant increase in energy consumption limits for existing production capacity. Leading paper companies have a clear advantage in both new and old production capacities compared to small and medium-sized paper companies, which may catalyze the industry into a new round of supply-side clearing cycle. At the same time, new production capacities are more difficult to meet the level 1 energy consumption requirements, which is expected to increase production costs or reduce newly invested capacities.

Currently, the paper industry is facing fierce competition and significant profit pressure, with accelerated growth in industry capacity, leading to further exacerbation of excess capacity. However, the continuous losses from backward production capacities have also accelerated the supply-side clearing of the industry, driving a substantial increase in paper prices and paper company profits.

Guotai Junan Futures stated that historically, products in the paper industry chain exhibit significant post-cycle characteristics. In terms of performance, the price increase rhythm of the pulp and paper industry chain lags behind that of industrial products in general, with raw materials lagging behind finished products