Guotai Haitong: More Hong Kong Brokerages May Enter the Virtual Asset Business

According to a report by Guotai Haitong, more Hong Kong brokerages are expected to expand into virtual asset businesses in the future. In addition, as the market gradually enters the earnings season, the profitability of the brokerage sector is likely to exceed expectations. Against the backdrop of efforts to stabilize the stock market, it is recommended to continue focusing on opportunities in undervalued and underweighted blue-chip stocks. For non-bank blue-chip stocks, the investment approach is shifting from a "marginal fundamental perspective" to a "total risk-reward perspective." In particular, with recent policies encouraging red-chip and H-shares to return to the A-share market, non-bank blue-chip stocks in the Hong Kong market stand to benefit even more.