On June 25, 2025, China’s A-share market continued its upward momentum, with the Shanghai Composite Index rising 1.03% to hit a year-to-date high. The Shenzhen Component Index gained 1.72%, while the ChiNext Index surged 3.11%, showcasing strong investor sentiment. Total market turnover reached 1.64 trillion yuan, an increase of 191.5 billion yuan from the previous trading day.
Financial Sector Leads the Rally
The financial sector emerged as the day’s top performer, driving much of the market’s gains. Over ten stocks in the sector hit their daily trading limits, including Huajin Shares, Tianfeng Securities, Guosheng Jinkong, Xiangcai Shares, and Nanhua Futures. East Money Information soared 10.04%, while Guotai Junan and Cinda Securities posted significant gains.
In Hong Kong, the Chinese mainland broker index surged over 55%. Notably, Guotai Junan International skyrocketed nearly 200%, followed by Shenwan Hongyuan Hong Kong with a gain exceeding 42%. Other major brokers like Hongye Futures, Zhongzhou Securities, Shenwan Hongyuan, and China Merchants Securities also posted substantial increases.
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Regulatory Milestone Fuels Broker Boom
The surge was triggered by a pivotal development on June 24: Guotai Junan International, a subsidiary of Guotai-Haitong Group, 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)—and to provide investment advice on these assets.
This regulatory green light marks a transformative shift for traditional financial institutions. It allows brokers to move beyond being mere trading conduits and evolve into cross-border clearing hubs and platforms for asset tokenization.
What Are Stablecoins?
Stablecoins are a class of cryptocurrencies designed to maintain price stability by pegging their value to reserve assets like fiat currencies (e.g., the U.S. dollar), commodities, or other crypto assets. By minimizing volatility, they enable fast, low-cost cross-border transactions and serve as a bridge between traditional finance and decentralized ecosystems.
Experts suggest that stablecoins could fundamentally reshape the role of brokers. Instead of just facilitating equity trades, they can now support tokenized securities, real-world asset (RWA) financing, and global settlements—enhancing revenue streams and long-term valuation potential.
Stablecoins as Financial Infrastructure
According to Guosheng Securities, stablecoins function as foundational infrastructure in blockchain ecosystems—akin to "digital cash" on the blockchain. One of the most promising use cases is stock tokenization, where traditional equities are represented as digital tokens on a blockchain, enabling fractional ownership, 24/7 trading, and seamless integration with decentralized finance (DeFi) protocols.
Among various RWA applications, stock tokenization stands out for its scalability and regulatory feasibility, positioning stablecoins at the heart of next-generation financial innovation.
19 Undervalued Growth Stocks Identified
With financial stocks leading the charge, market attention is shifting toward undervalued yet high-growth opportunities. Based on analysis by Securities Times’ DataLab, 19 A-share companies meet strict criteria for potential outperformance:
- Share price below 10 yuan
- Forecasted net profit growth exceeding 100% in 2025
- Positive net income in Q1 2025
- At least three institutions issuing positive ratings ("Buy" or "Outperform")
- 2024 net profit above 200 million yuan
These stocks represent compelling value plays with strong fundamentals and institutional backing.
Top Performer: Yuyuan Stock
Yuyuan Stock leads the pack with 14 institutions issuing positive ratings. Analysts project a staggering 964.81% net profit growth for 2025—the highest among the group. The company has also demonstrated confidence in its future by repurchasing approximately 22.86 million A-shares for around 130 million yuan.
Shenwan Hongyuan Securities highlighted Yuyuan’s strategic focus on upgrading its core business under the “Oriental Lifestyle Aesthetics” vision. Through brand diversification, industrial clustering, and cultural export initiatives, Yuyuan aims to build a comprehensive lifestyle ecosystem with global reach.
Lowest Valuation: Xiamen C&D
Among the 19 stocks, Xiamen C&D boasts the lowest trailing P/E ratio. Backed by 10 institutional buy ratings, it has a consensus forecast of 115.33% earnings growth in 2025.长江证券 (Changjiang Securities) noted that the company may be nearing a business turnaround, recommending investors seize this bottom-entry opportunity.
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Sector Clusters: Real Estate & Building Materials
The 19 selected stocks are concentrated in two sectors: Real Estate and Construction & Decoration.
As of June 25, institutional analysts issued 19 positive ratings for real estate firms and 12 for construction-related companies in June alone—indicating renewed interest in these beaten-down industries.
Market Recovery Signals
HuaFu Securities pointed to three key catalysts:
- Declining interest rates improving affordability
- Government housing stockpiling programs
- Monetary compensation in urban renewal projects
These factors are expected to boost homebuyer confidence and stabilize the property market. In turn, demand for building materials and downstream industries could rebound, alleviating credit risks across the supply chain.
Currently, the building materials sector shows limited downside risk, with valuations even lower than those seen at the end of 2022—suggesting strong mean-reversion potential.
Key Picks in Construction & Real Estate
Notable undervalued stocks include:
- Qibin Group (float glass & photovoltaic glass)
- Keshun Shares (waterproofing materials)
- Jingjing Technology (solar glass)
- Chengtou Holding (urban development)
- Woaiwojia (real estate services)
All five trade under 10 yuan and are forecasted to grow net profits by over 100% this year.
Among them, Qibin Group has the lowest P/E ratio and enjoys strong analyst support—17 institutions have issued positive ratings. Consensus forecasts predict a net profit surge of more than 141.35% in 2025.
HuaChuang Securities noted that Qibin’s dual-core strategy in float glass and photovoltaic glass is now fully operational. Looking ahead, its emerging glass technologies could replicate past successes, ensuring long-term growth.
Four Stocks with Over 30% Upside Potential
DataLab analysis reveals four stocks with particularly attractive upside:
- Chengtou Holding: 45.41% potential upside (highest)
- Qibin Group: Over 30% target increase
- Woaiwojia: Strong growth outlook
- TCL Technology: Diversified tech play
Chengtou Holding, rated “Outperform” by four institutions, is projected to grow profits by 138.32% in 2025. As a Shanghai-based urban investment firm with unique resource advantages, it benefited from high-quality project launches in 2024. With ample unbilled resources and improved Q1 earnings,兴业证券 (Industrial Securities) sees strong momentum ahead.
Frequently Asked Questions
What caused Guotai Junan International's stock to surge nearly 200%?
The spike followed regulatory approval from Hong Kong’s SFC to offer virtual asset trading services, including stablecoins and major cryptocurrencies. This positions the firm at the forefront of traditional finance’s integration with digital assets.
Why are stablecoins important for financial markets?
Stablecoins reduce volatility in crypto transactions and act as digital versions of fiat currency. They enable faster cross-border payments, facilitate asset tokenization, and support DeFi innovation—making them critical infrastructure for modern finance.
What defines an “undervalued growth stock”?
An undervalued growth stock combines strong earnings growth potential with a relatively low share price and valuation metrics (like P/E). These stocks often trade below intrinsic value due to market sentiment but offer high return potential when fundamentals improve.
How can investors identify high-potential stocks?
Look for consistent profitability, institutional endorsement (buy ratings), strong future earnings forecasts (>100% growth), low current valuations (<10 yuan/share), and positive industry tailwinds such as policy support or technological adoption.
Is stock tokenization already happening?
Yes—several global exchanges and fintech platforms are piloting tokenized stock programs using blockchain technology. These allow fractional ownership and extended trading hours, with stablecoins often used as settlement mechanisms.
Can traditional brokers benefit from crypto adoption?
Absolutely. By integrating virtual asset services, brokers can diversify revenue through trading fees, custody solutions, advisory services, and participation in new markets like RWA financing and DeFi integrations.
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Core Keywords: stablecoin, undervalued growth stocks, stock tokenization, virtual asset trading, broker digital transformation, RWA, financial market innovation