China Tells Brokerages to Pause Asset Tokenization
China’s securities regulator has quietly told some mainland brokerages to pause their real-world asset (RWA) tokenisation businesses in Hong Kong, sources familiar with the matter told Reuters, signalling Beijing’s unease over a surge of interest in offshore digital assets.
RWA tokenisation converts traditional financial products such as stocks, bonds and real estate into digital tokens that can be traded on blockchain platforms. The approach has gained momentum in Hong Kong, where firms have been racing to launch tokenised offerings under the city’s new virtual asset regime.
At least two leading Chinese brokerages received informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks instructing them to refrain from expanding RWA activity offshore, the sources said. One person familiar with the matter said the regulator’s intent was to strengthen risk controls in a nascent business and ensure companies’ claims were backed by legitimate underlying assets.
Hong Kong Push Meets Beijing’s Caution
The move highlights a growing policy divergence. pitched itself as a digital assets hub, rolling out new rules for stablecoins and virtual asset management. The ) said earlier this month that 77 firms expressed interest in applying for stablecoin licences since the regime was introduced in June.
By contrast, mainland regulators maintained a cautious stance later than banning cryptocurrency trading and mining in 2021. Last month, Chinese authorities also directed major brokers to stop publishing research endorsing stablecoins in a bid to cool domestic enthusiasm, Reuters previously reported.
The global RWA market is valued at about $29 billion, forecasts suggesting the figure could climb to $2 trillion by 2030. Chinese financial institutions already tested the waters: in June, GF Securities’ Hong a suite of “GF tokens” backed by multiple currencies, while China Merchants Bank International assisted issue a 500 million yuan ($70 million) tokenised bond in July.
Developers outside the brokerage sector are also joining the push. Last month, Chinese property group Seazen said it was setting up an institute in Hong Kong to promote RWA tokenisation initiatives.
Market enthusiasm boosted share prices of firms tied to the sector. Guotai Junan International stock soared more than 400% earlier this year later than it announced approval to offer cryptocurrency Kong, while Fosun International shares jumped nahead 28% in August later than its chairman met Hong Kong officials to discuss stablecoin projects.
