A powerful wave of optimism swept through financial markets on June 25, as A-share indices extended gains across the board. The Shanghai Composite Index rose 1.03%, hitting a year-to-date high, while the Shenzhen Component Index advanced 1.72%. The star performer was the ChiNext Index, which surged 3.11%, fueled by strong momentum in technology and financial sectors. Total market turnover reached 1.64 trillion yuan, reflecting heightened investor participation and confidence.
Financial Sector Takes Center Stage
The financial sector emerged as the primary driver of today’s rally, with banking, securities, and futures firms leading the charge. Over ten stocks in the sector closed at their daily trading limit, including Huajin Shares, Tianfeng Securities, Guosheng Jinkong, Xiangcai Shares, and Nanhua Futures. Notably, Dongfang Wealth jumped 10.04%, while Guotai Haotong and Cinda Securities posted significant gains.
This broad-based strength wasn’t limited to mainland markets. In Hong Kong, the CSI China-funded securities index soared more than 55%. Guotai Junan International led the pack with an astonishing near-200% surge, followed by Shenyuan Hongyuan Hong Kong up over 42%, alongside strong performances from Hongye Futures, Zhongzhou Securities, and China Merchants Securities.
Regulatory Milestone Fuels Stablecoin Rally
The catalyst behind this explosive performance was a landmark regulatory development. On June 24, Guotai Junan International — a subsidiary of Guotai Haotong Group — officially received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities trading license. The new license permits the firm to offer virtual asset trading services, including cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether (USDT).
Additionally, the firm can now provide investment advice related to digital assets, marking a major shift in the role of traditional financial institutions in Asia’s evolving crypto landscape.
What Are Stablecoins?
Stablecoins are a class of cryptocurrencies designed to maintain price stability by being pegged to reserve assets like the U.S. dollar or other fiat currencies. They combine the efficiency and borderless nature of blockchain technology with reduced volatility, making them ideal for cross-border payments, remittances, and institutional settlements.
Experts suggest that stablecoins could fundamentally transform brokers from mere transaction facilitators into key players in asset tokenization and global settlement infrastructure. This evolution may significantly enhance valuation multiples for forward-thinking financial firms.
According to Guosheng Securities, stablecoins serve as foundational tools in blockchain finance — effectively acting as "on-chain fiat." One of the most promising use cases is stock tokenization, where traditional equities are represented as digital tokens on a blockchain. This application sits at the heart of Real World Assets (RWA) — a rapidly growing segment expected to drive institutional adoption of decentralized finance (DeFi).
19 Undervalued Growth Stocks Identified
As momentum builds in high-growth sectors, attention is turning toward undervalued opportunities poised for rebound. Based on data compiled by Securities Times’ DataLab, 19 A-share companies meet strict criteria for potential breakout performance:
- 2024 net profit exceeding 200 million yuan
- Profitable in Q1 2025
- Latest closing price below 10 yuan
- Rated "Buy" or "Outperform" by at least three institutions
- Consensus forecast for 2025 net profit growth exceeding 100%
These stocks represent compelling value plays in sectors currently trading below their historical averages but showing strong earnings recovery potential.
Top Picks: High Growth and Institutional Confidence
Leading the list is Yuyuan Stock, which has attracted positive ratings from 14 institutions. Analysts project a staggering 964.81% net profit growth for 2025 — the highest among the cohort. The company has also demonstrated commitment to shareholder value, repurchasing approximately 22.86 million A-shares for around 130 million yuan this year.
Shenyuan Hongyuan Securities highlighted Yuyuan’s strategic focus on upgrading its core business around the “Oriental Lifestyle Aesthetics” concept. By optimizing product lines and leveraging a multi-brand ecosystem, the company aims to build a comprehensive cultural consumer brand with international reach.
Another standout is Xiamen Guotai, which boasts the lowest trailing P/E ratio among the group. Backed by 10 institutional buy ratings, it carries a consensus forecast of 115.33% earnings growth for 2025. Changjiang Securities noted that the company appears to be nearing an operational inflection point, urging investors to consider early positioning ahead of a potential turnaround.
Sector Clusters: Building and Real Estate Lead
Among the 19 identified stocks, two sectors dominate: Building & Decoration and Real Estate.
DataLab shows that since June 1, these industries have received 12 and 19 institutional “positive” ratings respectively — signaling renewed analyst interest amid improving macro conditions.
HuaFu Securities believes declining interest rates, government housing stockpiling initiatives, and monetized urban renewal projects are collectively boosting homebuying affordability and sentiment. These tailwinds could stabilize the real estate market and revive demand across downstream sectors — from building materials to home services.
Key Players Under 10 Yuan with Triple-Digit Growth Forecasts
Notable names include:
- Champion Technology (Qibin Group) – Trailing P/E is the lowest in the group; forecasted 2025 net profit growth exceeds 141.35%; supported by 17 institutional buy ratings.
- Keshun Shares
- Jingjing Technology
- Chengtou Holding
- Woaiwojia (I Love My Home)
HuaChuang Securities praised Qibin Group for successfully establishing dual growth engines in float glass and photovoltaic glass. Looking ahead, its emerging specialty glass businesses could replicate past success, offering long-term upside.
Four Stocks with Over 30% Upside Potential
Further analysis reveals four stocks with particularly attractive risk-reward profiles based on current prices versus consensus target prices:
- Chengtou Holding: 45.41% upside — highest in the group
- Qibin Group
- Woaiwojia
- TCL Technology
Chengtou Holding, a Shanghai-based urban investment SOE, benefits from unique local resources and policy support. With high-quality projects entering revenue recognition in 2024, robust sales growth and ample backlog have driven improved quarterly results.兴业证券 (Industrial Securities) assigned an “Outperform” rating based on its strong fundamentals.
Frequently Asked Questions
Q: Why did stablecoin-related stocks surge so sharply?
A: The near-200% spike in Guotai Junan International was triggered by regulatory approval to offer crypto trading services in Hong Kong — a rare green light from a major financial hub that signals growing institutional acceptance.
Q: What makes stablecoins valuable for traditional finance?
A: Stablecoins enable faster, cheaper cross-border settlements and serve as bridges between fiat and digital assets. Their integration allows brokers to offer new services like tokenized securities and DeFi yield products.
Q: Are low-priced stocks always risky?
A: Not necessarily. While price alone isn’t an indicator of quality, deeply discounted stocks with strong earnings growth forecasts, institutional backing, and improving fundamentals can offer asymmetric return potential.
Q: How does stock tokenization work?
A: It involves representing ownership of real-world equities as digital tokens on a blockchain. This increases liquidity, reduces settlement times, and opens access to global investors via decentralized platforms.
Q: Is Hong Kong becoming a crypto hub?
A: Yes. With clear regulations since 2023 allowing retail crypto trading and licensing for virtual asset firms, Hong Kong is positioning itself as Asia’s gateway for compliant digital finance innovation.
Q: What should investors watch next?
A: Monitor adoption of stablecoins in institutional payments, expansion of licensed crypto brokers in Asia, and policy developments around RWA frameworks in major economies.
The convergence of traditional finance and digital assets is accelerating. As regulatory clarity improves and infrastructure matures, stablecoin adoption could become a key driver of valuation re-rating across financial markets.
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