Hong Hao: On-chain Stocks Drive Global Price Discovery and Reduce Vulnerability

At the Binance offline private event on July 31, economist Hong Hao stated that the launch of stock contracts for companies like Samsung Electronics, SK Hynix, and Hyundai Motor on Binance will lower the entry barriers for investors, promote asset openness and diversify the investor structure, enhance price discovery efficiency, and reduce vulnerabilities caused by closed and singular investor structures. He pointed out that the core competitiveness of the U.S. stock market lies in capital openness, and the expansion of user groups for more assets is a positive change. Hong emphasized that the value of listed companies is determined by their profitability, and the global market's arbitrage mechanism will drive price unification. Unlike gold and Bitcoin, which rely on market transactions to form prices, listed companies can continuously generate cash flow, and their value can be calculated through future earnings discounting. Regardless of the listing location, a company's intrinsic value remains unchanged, and arbitrage actions will eliminate price differences, driving global market prices to converge. Hong also mentioned that financial innovations such as on-chain stocks are pushing global capital markets into a 24-hour on-chain trading era, improving global price discovery efficiency. He believes that financial innovation and regulatory relaxation complement each other, and historical experience shows that grand narratives, credit expansion, and regulatory easing are key factors in the prosperity cycle of financial markets.

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