- CSRC instructed mainland brokerages to pause Hong Kong RWA tokenization for regulatory risk control.
- Hong Kong advances tokenization with projects like GF tokens and a 500M yuan digital bond.
- Market swings show volatility as Guotai Junan surged 400% and Fosun rose 28% on tokenization news.
The tokenization of real-world assets in Hong Kong has encountered resistance from Beijing. According to a Reuters report, the China Securities Regulatory Commission (CSRC) advised several mainland brokerages to pause tokenization projects in the city. Informal guidance was delivered to at least two major firms earlier this month.
The regulator’s instruction aims to ensure risk control and proper business backing for tokenized ventures. A Beijing-based financial lawyer said the authorities want frameworks in place before large-scale deployment. The statement underlined Beijing’s stance that regulation must stay ahead of market activity.
Hong Kong Advances Digital Finance Plans
While Beijing moves cautiously, Hong Kong is pressing forward with its digital asset strategy. The Financial Services and the Treasury Bureau, together with the Hong Kong Monetary Authority, are reviewing regulatory frameworks for tokenization. Officials intend to build a structured legal base for future projects.
Several initiatives have already launched in Hong Kong. GF Securities introduced GF tokens in June. China Merchants Bank International issued a digital bond worth 500 million yuan in August. Seazen Group also announced a research institute focused on tokenization. These projects indicate strong momentum despite regulatory concerns in mainland China.
Stock Market Responds to Tokenization Activity
The growth of tokenization efforts has spilled into the Hong Kong stock market. Guotai Junan International’s shares surged more than 400% after receiving approval for cryptocurrency trading. Fosun International climbed nearly 28 percent following reports of stablecoin discussions with Hong Kong officials.
These changes reveal the volatility surrounding companies connected to tokenization and digital assets. Market reactions show how quickly investor sentiment can shift in response to regulatory or corporate moves.
China Balances Innovation With Control
Beijing’s caution follows earlier restrictions in the digital asset sector. The mainland banned cryptocurrency trading and mining in 2021. In August, regulators instructed brokers to stop publishing supportive research on stablecoins.
At the same time, global tokenization is expanding rapidly. Analysts estimate the current market value at $29 billion. Projections suggest it could exceed $2 trillion by 2030. The growth is expected to come from enhanced liquidity, transparency, and efficiency offered by blockchain systems.
A Shanghai-based blockchain researcher noted that regulators in China intend to closely manage every stage of tokenization. For Hong Kong, the challenge lies in balancing innovation with compliance. The city continues positioning itself as a bridge between mainland regulation and global finance.
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