Digital Money zone collectively rises——these fund managers were lying in ambush in advance.

Recently, the United States and Hong Kong have almost simultaneously advanced stablecoin legislation. Stimulated by favourable information, Bitcoin has broken through 110,000 USD, setting a new historical high.

At the same time, on May 29, the Hong Kong stock of Zhong An Online surged by 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% limit-up, and other stocks such as Xinguodu, Feitian Chengxin, and Hengbao Co., Ltd. also saw significant gains.

From the data at the end of the first quarter, some public funds have "sneaked into" these stocks. Taking ZhongAn Online as an example, which rarely has a public fund (excluding passive products) heavily invested in it, Guofu New Trend has newly entered this stock as the fourth largest holding, becoming the only public fund product heavily invested in this stock at the end of the first quarter. In previous quarters, there have been instances where some funds briefly held a significant position in this stock before completely liquidating.

In the A-share market, Langxin Group was heavily invested by three products managed by Chen Ying, the chief investment officer of Golden Eagle Fund, at the end of the first quarter. However, the heavy investment in this stock may be more based on AI perspectives. Jingbeifang was also newly held by several fund managers, including Zhai Xiangdong, Nong Bingli, Hu Yibin, and Yang Fei. It is worth mentioning that at the end of the first quarter, although no public funds heavily invested in one of the "four small dragons of digital currency", New Guodu, the National Social Security Fund 604 portfolio increased its holdings in this stock to 10 million shares.

1 The concept of digital currency has exploded

Recently, the Hong Kong Legislative Council passed the "Stablecoin Ordinance Draft," establishing a licensing system for fiat stablecoin issuers in Hong Kong. This marks the formal inclusion of stablecoins as a virtual asset into the legal regulatory framework in Hong Kong. It is expected that by the end of this year, institutions can apply to the Monetary Authority to become compliant stablecoin issuers.

The U.S. government is also intensifying efforts to promote stablecoin legislation. On May 28, the U.S. Senate passed a procedural motion for the "2025 U.S. Stablecoin Innovation and Establishment Act" (GENIUS Act), attempting to provide federal oversight for dollar-pegged stablecoins.

The above news began to officially ferment in the A-share and Hong Kong stock capital markets on May 29. As of the close, Hong Kong stock Zhongan Online rose 31.56% in a single day, and the stock price reached 21.05 yuan. On April 9, the stock price was as low as 9.54 yuan. More than a month later, its share price has doubled.

From the actual situation, 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 it is also the first bank in Asia to offer cryptocurrency trading services for retail users. The company is closely connected with digital asset exchanges and stablecoin issuers, and more cooperation is expected to be developed in the future.

The digital currency concept in the A-share market also exploded on the same day. By the close, the Wind Digital Currency Concept Index surged by 7.66%, with Lakala, Xiongtai Technology, Sifang Jingchuang, and Tianyang Technology all hitting a 20% limit up. Additionally, other stocks such as New Guodu, Feitian Chengxin, Hengbao Co., Shenzhou Information, Jingbeifang, Hailian Jinhui, and Cuiwei Co. also saw significant increases.

Among them, as an important trading scenario for stablecoins, RWA (i.e., "Real World Asset Tokenization") has received widespread attention from the market, and both Langxin Group and Xiexin Nengke have seen their stocks hit the daily limit due to the "RWA concept". Previously, these two companies had successively collaborated with Ant Group to complete RWA financing of 100 million and 200 million RMB.

2 Aiming at "Digital Coin Minting Rights"

A stablecoin is a type of digital currency that is pegged to traditional assets such as fiat currencies or commodities. It is often seen as a bridge between traditional finance and cryptocurrencies, with the potential to facilitate faster and cheaper transactions while reducing price volatility and associated risks.

Whether in the United States, Hong Kong, or the European Union, major financial centers are establishing their own digital currency systems to ensure greater monetary control in the digital finance era.

"Stablecoin transactions are relatively more efficient than traditional banks in Europe and the United States, especially in terms of cross-border payments." According to Guohai Securities analysis, compared to traditional bank wire transfers which take several days to complete, stablecoin transfers often only take a few minutes. Additionally, the transfer fees for stablecoins are lower, with costs depending on network conditions (for example, with USDT, it usually only costs a few dollars), while some payment systems charge fees as a percentage, and the rates are higher.

Hong Kong Legislative Council member Wu Jiezhuang tweeted that the passage of the above draft in Hong Kong is an important step for it to become an international Web3 center, and Hong Kong's stablecoin is based on legal tender as the underlying asset. This practice directly refers to the "digital currency minting right", which has greater monetary influence in the era of digital economy by issuing digital currencies linked to legal tenders.

At the same time, against the backdrop of rampant de-dollarization rhetoric globally, stablecoins are becoming the "lifeline" for the US dollar, while also absorbing some demand for US Treasuries. Currently, the stablecoin market has exceeded $250 billion, with the underlying assets mostly consisting of short-term US Treasuries, making it a significant holder of US Treasuries.

Citibank's report points out that stablecoins are the gateway to decentralized finance—tracking the growth of stablecoin issuance helps to determine the overall health and growth of the digital asset environment. Stablecoins can be viewed as a means of storing value without the inherent volatility of native tokens. Another potential use case is for payments and cross-border transactions, as a medium of exchange, the use case for stablecoin payments is growing, and regulatory clarity can pave the way for broader adoption of payments.

However, stablecoins are not without challenges - issues such as insufficient asset backing, lack of transparency, and potential systemic risks still exist.

3 These funds are preemptively positioned

Under normal circumstances, public fund managers who are optimistic about digital currencies often implement their strategies by holding or increasing positions in publicly listed companies related to digital currencies.

Taking ZhongAn Online, which has few public funds (excluding passive products) heavily invested in, as an example, by the end of the first quarter, the Guofu New Trend fund, managed by Shen Zhuxi and Gao Yanyun, had newly invested in this stock, making it the fourth largest holding, with a stake of 9.40%. This is also the only public fund product that heavily invested in this stock by the end of the first quarter.

However, as of May 28, in the context of Zhongan Online's stock price rising sharply since April 8, the net value of the product only increased slightly by 0.18%.

By the end of the second quarter of 2024, the Huatai-PB New Economy Hong Kong-Shenzhen, managed by He Qi, the Huatai-PB Asian Enterprises, and the Guangfa Financial Real Estate Select, managed by Ran Yuhang, all heavily invested in the company but exited from their heavy positions in the third quarter of last year. The招商安泽稳利9 months held a brief heavy position in ZhongAn Online in the third quarter of last year before also choosing to liquidate in the fourth quarter.

In the A-share market, Longxin Group also has public funds heavily invested. By the end of the first quarter, three products managed by Chen Ying, Chief Investment Officer of Jin Ying Fund and General Manager of the Growth Investment Department, all had significant holdings in this product. Among them, Jin Ying Core Resource and Jin Ying Technology Zhiyuan increased their holdings, with share counts of 2.77 million shares and 970,000 shares, respectively, while Jin Ying National New Emerging was newly invested, with a share count of 1.77 million shares.

Chen Ying heavily invests in Langxin Group, or more from the AI perspective. In the quarterly report, he mentioned that AI remains a major driving force in the consumer electronics industry, especially in innovative products. The combination of AI technology and traditional industries forms a strong explosive potential and broad growth space for the vertical applications of artificial intelligence across various sectors.

Apart from Chen Ying, the other public funds heavily invested in this stock are mostly index enhancement and quantitative products.

At the end of the first quarter, Jingbeifang was also held by several fund managers.

The招商优势企业 under the leadership of Zhai Xiangdong, the景顺长城品质长青 under the leadership of Nong Bingli, and the华安媒体互联网 under the leadership of Hu Yibin, have all newly entered this stock, with shareholdings of 6 million shares, 5.1666 million shares, and 1.6445 million shares respectively; the鹏华创新驱动 and 鹏华高端装备 managed by Yang Fei have also newly entered this stock as the top ten heavy positions, with holdings of 1.1582 million shares and 515,900 shares respectively; the创金合信数字经济主题 and 创金合信动态平衡 managed by Wang Xin, as well as the华安先进制造 managed by Xiong Zheyin, have similarly newly entered this stock as heavy positions.

As a company dedicated to providing information technology services ( ITO ) and business process outsourcing services ( BPO ) for domestic and foreign financial institutions, Jingbeifang achieved a historical high in revenue scale in 2024. In terms of cutting-edge technology layout, the company has realized the large-scale application of artificial intelligence, big data, and digital currency. In 2024, the company's innovative products in artificial intelligence and big data achieved a revenue of 79.59 million yuan, accounting for 1.72% of total revenue, with a year-on-year growth of 65.29%; intelligent customer service and precise marketing in consumer finance achieved a revenue of 820 million yuan, accounting for 17.69% of total revenue, with a year-on-year growth of 37.46%.

According to the financial report, the company's performance in 2024 is attributed to its deep involvement in the construction of the financial institution's innovation system, while also proactively laying out and implementing innovative technology products such as artificial intelligence and big data. The company provides technical support and testing services for the core system construction of banks, 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 funds heavily invested in one of the "digital currency four dragons," New Guodu, the National Social Security Fund 604 portfolio increased its holdings of the stock to 10 million shares.