Weekly Market Overview: Stablecoins Drive Brokerage Rally Amid High Activity
The brokerage sector surged by 7.62% this week, fueled by rising trading volumes and growing interest in stablecoin-related services. Key catalysts include:
– Elevated trading activity: Average daily stock-fund transactions reached ¥1.8 trillion, up 23.1% week-over-week.
– Regulatory milestones: Major brokers like Guotai Junan International and Tianfeng International secured Hong Kong regulatory approvals to offer virtual asset trading, including cryptocurrencies (Bitcoin, Ethereum) and stablecoins (Tether).
– Tokenized securities innovation: GF Securities (Hong Kong) launched “GF Token,” a daily redeemable tokenized security via HashKey Chain, accessible to professional investors.
With macroeconomic stability policies, improved IPO performance, and undervalued sector metrics, mid-year reports are projected to reflect sustained growth. Three strategic investment focuses:
1. Retail brokerages with high performance elasticity.
2. Hong Kong-exposed players benefiting from IPO market expansion.
3. Fintech leaders driving digital transformation.
👉 Explore how stablecoins are reshaping finance
Insurance Sector: Premium Growth and Regulatory Support
Performance Highlights
- Life insurance premiums rose 3.72% YoY (Jan–May 2025), accelerating from April’s 1.82%.
- Property insurance maintained steady growth at 3.98%.
Policy Tailwinds
The “High-Quality Inclusive Finance Development Plan” (June 2025) emphasizes:
– Non-bank institutions expanding services for SMEs and agriculture.
– Enhancing inclusive insurance via product innovation and specialized operations.
Favorable investment conditions (bond market gains, dividend stocks) and cost-reducing reforms (premium rate adjustments) position insurers for recovery.
👉 Why inclusive insurance matters for investors
Top Picks and Risk Considerations
Recommended Portfolio
| Category | Companies |
|---|---|
| Brokerages | Orient Securities, East Money, Guotai Junan |
| Insurers | China Taiping, Ping An Insurance |
| Fintech | Guidewire, GF Securities |
Risks
- Market volatility impacting investment returns.
- Insurance liability-side underperformance.
FAQs
Q: How do stablecoins benefit traditional brokerages?
A: They enable faster settlements, lower fees, and access to crypto-native investors, expanding revenue streams.
Q: What’s driving life insurance premium growth?
A: Improved new policy sales and regulatory support for product diversification.
Q: Which brokerages lead in virtual asset services?
A: Guotai Junan, Tianfeng, and GF Securities are pioneers with Hong Kong regulatory approvals.
Q: Are insurers still undervalued?
A: Yes, with PB/ROE ratios suggesting room for revaluation amid investment tailwinds.