Hong Kong stocks are looking for new liquidity outlets, and Ju.com has delivered a report

Author: 0xresearch

There was just a piece of news that most people might scroll past:

Ju.com announced that the trial run stock 0XXXX.HK in the xBrokers trading zone will officially merge into the Hong Kong stock code 01959.HK (Century United Holdings Limited) on December 1, 2025. All positions during the trial run phase will be merged into real Hong Kong stock accounts at market value with a single click, managed by licensed brokers. 01959.HK has already gone through a strong market cycle, as shown in the image below. Through Ju.com and xBrokers, this stock retains its original Hong Kong stock identity while being connected to a funding entry aimed at crypto users, combining traditional brokerage channels with on-chain channels, creating a rather intuitive example of the integration of TradFi and crypto infrastructure.

There is another sentence in the announcement worth reading several times: this stock zero-distance trading + stock liquidity reward mechanism has completed its first round of verification in a real market environment. When placed in the context of the past decade of Hong Kong stock history, the significance of this news has changed even more.

I. From Global IPO King to Liquidity Anxiety

Looking back at the timeline, the Hang Seng Index was born in 1964, and Hong Kong stocks have experienced eight complete bull markets. Initially, this was supported by improvements in the external environment and rapid economic growth, followed by the opening up of the mainland and the window for state-owned enterprises to list in the south. The internet wave, Hong Kong's return, and the connectivity mechanism have continuously elevated Hong Kong's position in the global fundraising system, making Hong Kong stocks one of the preferred stages for new economy companies to go international.

The data has always looked good. Over the past decade, the scale of new stock issuance in Hong Kong has consistently ranked among the top three globally, often securing the top spot in IPO fundraising amounts. Even in the first half of 2025, many international consulting firms still ranked Hong Kong at the forefront.

However, another picture is completely different. While the financing side is bustling, the trading side is becoming increasingly cold.

In 2022, under the dual pressures of global interest rate hikes, geopolitical conflicts, and local epidemics, the financing amount in Hong Kong's new stock market plummeted by more than 90% year-on-year, with the number of new stocks nearly halved, and fundraising highly concentrated in a few leading projects. The situation on the Growth Enterprise Market was particularly extreme, with the average daily trading volume dropping from a peak of 1 billion HKD to only a few tens of millions, and most stocks lingering around 1 HKD, with many trading days recording zero transactions.

On the surface, the main board appears much more lively, but a closer look reveals that the southbound funds are still centered around a few mega-cap blue chips. Familiar names like Alibaba, Tencent, Meituan, Xiaomi, and Ping An of China dominate the majority of trading volume. More than half of the main board stocks have daily trading volumes of less than 5 million HKD, and many individual stocks frequently record zero transactions every few days.

Over time, that familiar cycle began to solidify:

Liquidity weakens, valuations discount, financing difficulties rise, and companies are even less willing to spend resources on market making, leading to further declines in liquidity.

On a narrative level, Hong Kong stocks still carry labels like "international financial center" and "connecting China and the world," but on the actual trading level, they are increasingly approaching a market marginalized by liquidity.

II. What Threshold Are Retail Investors and Small Funds Stuck At?

While the macro environment is undoubtedly important, many of the current issues facing Hong Kong stocks actually fall on the specific experiences of ordinary investors and small funds.

To participate through the Stock Connect, one needs to maintain an average daily asset of over 500,000 RMB for 20 consecutive trading days before applying, and complete a full set of risk assessments. Many investors outside of Hong Kong, even when trying to open accounts directly in Hong Kong, often find themselves going back and forth over details like proof of address, bank statements, and asset scale. Even if they successfully open an account, many banks will require maintaining a high account balance, or else a significant management fee must be paid annually.

Even if they manage to pass all the hurdles, trading itself is fraught with friction. Placing orders through the Stock Connect, a transaction of a few thousand HKD incurs stamp duty, transaction fees, settlement fees, system usage fees, and broker commissions, making the actual costs far exceed many people's expectations.

Many people say they are optimistic about Hong Kong stocks, but after calculating the costs, they can only suppress that interest.

An even more awkward reality is that even if they cross the threshold, there is often a lack of counterparties willing to place buy orders for small and medium stocks. Funds enter the market but struggle to translate into effective trading depth; investors who want to contribute liquidity lack mechanisms to respond.

III. What Three Things Did Ju.com and xBrokers Do in Such a Hong Kong Stock Market?

Bringing the perspective back to the merger from 0XXXX.HK to 01959.HK helps understand why Ju.com and xBrokers repeatedly emphasize the verification mechanism.

The first step is to provide a more accessible entry point for real Hong Kong stocks.

Users complete KYC on Ju.com, exchange USDT for the Hong Kong dollar stablecoin HKDJ, and can directly place orders for Hong Kong stocks in the same account. Settlement and custody are handled by licensed brokers, and trading mappings are recorded on-chain. This effectively reorganizes a smoother entry path within the existing institutional framework, allowing previously excluded global investors to genuinely participate.

The second step is to establish a clearer relationship between holding behavior and liquidity contribution.

In the design of xBrokers, the listed companies connected are allocated reserve funds based on a fixed proportion of their market capitalization, specifically used for repurchasing platform liquidity incentives in the secondary market, providing market value support for related assets. After investors buy Hong Kong stocks, if they choose to pledge their held stocks on xBrokers, they can receive liquidity incentives according to the rules. The pledge behavior translates into computational power and incentive returns, funded by the reserve fund pool.

For investors, this creates an additional yield curve directly linked to their willingness to hold and lock in the stock long-term. For listed companies, this is a tool to exchange real capital for stable buying and community attention.

The third step is to treat the low liquidity sectors of Hong Kong stocks as a testing ground.

The Growth Enterprise Market and many small and medium-cap main board stocks are currently the areas most lacking in buy orders, attention, and market-making budgets. Introducing this series of mechanisms here poses a specific question: if liquidity contribution itself can be transformed into a measurable asset that can be allocated by mechanism, do these long-sleeping sectors still have a chance to be reignited?

This is the core experimental proposition of Ju.com and xBrokers.

IV. What Safety Net Does the Hong Kong Stock System Provide for This Experiment?

Choosing Hong Kong stocks instead of U.S. stocks or other markets is not accidental.

One easily overlooked difference comes from the capital structure.

U.S. stocks adopt an authorized capital mechanism, where companies specify an authorized limit in their articles of association. As long as within this range, management can issue new shares multiple times, continuously diluting existing shares through financing, mergers and acquisitions, and employee incentives. For secondary market investors, dilution risk is a variable that runs through the entire lifecycle.

Hong Kong adopts a stricter statutory capital framework.

When a company registers, it must specify the total share capital and par value per share. When issuing additional shares, it must obtain approval from the shareholders' meeting under established procedures and report to regulatory authorities. The existence of a capital ceiling makes the boundaries of real equity clearer.

Conducting stock liquidity incentives under this system makes this part of equity closer to a bounded asset rather than a certificate that can be infinitely diluted at any time. For those looking to design long-term structures, this certainty is very important.

Combined with the current reality, the biggest issue facing Hong Kong stocks is concentrated on insufficient liquidity rather than valuations completely detached from fundamentals. Such a market naturally has a higher acceptance of any mechanism that can bring transparent, measurable incremental liquidity.

V. Companies, Communities, and Investors on the Same Line

From an overall structural perspective, the roles Ju.com and xBrokers aim to mobilize are clear. Listed companies seek better tools for market capitalization management and continuous buying; communities possess narrative capabilities and user bases but lack compliant and sustainable monetization methods; ordinary investors want to participate in Hong Kong stocks but are particularly sensitive to thresholds, transparency, and capital utilization.

Within this framework, listed companies connect part of their stocks and reserve funds through the xBrokers network, partially migrating the segments that originally relied on investment bank roadshows and broker sales to a combination of community and platform. The community transforms influence into real buying and market activity through subscription and trading zones, no longer just telling stories about the company but directly participating in liquidity building. Investors enter Hong Kong stocks through lower thresholds, retain shareholder rights such as dividends, and can receive liquidity incentives according to the rules, adding extra value to long-term holding.

The three parties operate around the same incentive logic, with retail investment, community narratives, and listed company financing beginning to converge from three parallel lines to the same table. If this flywheel can continue to turn, the main characters in the Hong Kong stock story have the opportunity to expand from a few mega-cap blue chips to more companies and communities that originally lacked a voice.

VI. Position in the Macro Cycle: Why Is This Path Worth Continuing to Observe?

In the current macro environment, several trends are advancing simultaneously.

Global interest rates are gradually falling from high levels, and funds are beginning to seek new sources of returns and new growth narratives. Regulatory agencies and traditional financial institutions in various countries are successively promoting the on-chain of real-world assets and the digitization of capital markets, experimenting with tokenized bonds, on-chain settlements, and higher frequency information disclosure mechanisms. Traditional exchanges themselves are also exploring transformation plans for digital infrastructure.

The contradiction facing Hong Kong stocks is very direct: while IPO numbers still look good, the trading volume and activity in the secondary market are gradually declining, with fundraising functions still intact, but pricing and liquidity functions have been discounted.

Against this backdrop, what Ju.com and xBrokers provide is not a brand new asset type but a layer of liquidity structural transformation superimposed on existing assets. Its potential comes from several combined factors: it has chosen a market that truly craves liquidity transformation; it utilizes a framework that is more suitable for long-term equity mapping at the institutional level; and it binds the interests of listed companies, communities, and investors all onto the same liquidity curve.

From a third-party perspective, it must be acknowledged that how far this model can go still depends on several key factors. Whether listed companies are willing to continuously allocate reserve funds to maintain this structure, whether the community can continuously bring real buying rather than short-term speculation, and whether the liquidity incentive mechanism can maintain sufficient transparency and safety under regulatory scrutiny.

One thing is certain: the story of liquidity in Hong Kong stocks has finally seen a new version that can be verified in a real trading environment.

VII. This Round of Financial Revolution May Just Be Beginning

Since this merger, the liquidity issue in Hong Kong stocks has gained a quantifiable, long-term trackable real-world sample. A more cautious view is to adopt a restrained optimism: Hong Kong stocks have indeed been under liquidity anxiety for years, and what Ju.com and xBrokers propose is a new structure that can be repeatedly compared in the real market, occurring in an environment where capital boundaries are clear and asset transparency is relatively high. Weighing risk against return, the lower limit is that this mechanism proves useful in localized scenarios, while the upper limit is that it is adopted by more companies and institutions, gradually solidifying into a new layer of liquidity infrastructure. For those accustomed to tracking Hong Kong stocks, RWA, and trading infrastructure, the truly noteworthy aspect of this merger is not which stock changed its code, but that the Hong Kong stock market now has an observable trajectory from today onward.