Stock Performance and Market Reaction
On June 3, 2025, Zhongke Jincai (SZSE: 002657) experienced a rapid intraday price surge, briefly hitting the 10% limit-up threshold. The stock closed at ¥23.76 per share, marking a 7.9% daily gain. This volatility followed the company's release of investor meeting minutes outlining its stablecoin strategy.
Stablecoin Business Model
Zhongke Jincai revealed significant preparations across three key areas:
- Business Scenarios: Developing use cases for stablecoin applications
- Technical Infrastructure: Building blockchain interoperability solutions
- Team Capabilities: Assembling specialized fintech talent
The company plans to adopt a bank-partnership model, collaborating with financial institutions to:
- Ensure regulatory compliance
- Leverage global asset networks
- Expand practical applications
Company Statement
When contacted by reporters, company representatives emphasized:
"Market movements reflect investor sentiment. We strictly avoid hype and only announce substantive progress. Current bank partnerships are progressing confidentially."
Stablecoin Fundamentals
Key characteristics of stablecoins:
- Cryptocurrencies pegged to fiat currencies
- Native blockchain interoperability
- Enhanced scalability for decentralized finance (DeFi) applications
Regulatory Developments
Hong Kong's landmark Stablecoin Ordinance took effect May 30, 2025, establishing:
- Mandatory licensing for issuers
- Oversight by the Monetary Authority
- First APAC-regulated stablecoin framework
Regarding potential license applications, the company stated:
"Updates will follow official channels when appropriate."
Corporate Background
Established in 2003, Zhongke Jincai focuses on:
- Artificial General Intelligence (AGI)
- Web3.0 infrastructure
- Digital currency R&D
- Data element commercialization
Financial Performance
Recent challenges include:
- 2024 Results: ¥61 million non-GAAP net loss
- Q1 2025: Revenue grew 41% YoY to ¥175 million, but losses continued
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FAQ Section
Q: What differentiates Zhongke Jincai's stablecoin approach?
A: Their bank-partnership model prioritizes compliance while leveraging institutional assets.
Q: How significant is Hong Kong's new regulation?
A: It creates Asia's first comprehensive licensing regime, potentially attracting $20B+ in stablecoin circulation.
Q: When will partnership details be disclosed?
A: The company follows disclosure requirements but protects competitive information during development.
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Investment Disclaimer: This content represents analyst observations, not financial advice. Market risks require independent evaluation.