DBS released a research report stating that during Hong Kong FinTech Week, regulation emerged as one of the most frequently mentioned topics in digital asset forums. Compared to traditional finance, the regulatory framework for digital assets is still evolving. The bank reiterated its "Buy" ratings for BOC Hong Kong (02388) and OSL Group (00863), with target prices set at HK$39.4 and HK$20, respectively.

The report noted that Chinese regulators remain cautious toward digital assets but have not imposed outright bans. RMB internationalization and digital asset development are areas Chinese authorities aim to explore further, with multiple pathways available, including the central bank’s digital yuan (e-CNY).

DBS believes banks play a crucial role in the digital asset space. Contrary to investor concerns that stablecoins may disrupt banking operations, banks are actively engaging in digital assets. The report maintains a positive outlook for Hong Kong’s banking and fintech sectors.

Short-term catalysts for fintech stocks include Hong Kong’s approval of stablecoin licenses and potential pro-crypto policies from the U.S. The bank favors companies with clear stablecoin and digital asset use cases, such as OSL Group (00863), Lianlian DigiTech (02598), and Linklogis (09959).

For banks, BOC Hong Kong (02388) is expected to benefit from long-term opportunities in RMB tokenization and internationalization.