China’s securities regulator has advised some local brokerages to temporarily pause their real-world asset (RWA) tokenisation activities in Hong Kong, Reuters has learned from two sources familiar with the matter. The guidance underscores Beijing’s cautious approach toward the rapidly growing digital assets market outside the mainland.
RWA tokenisation involves converting traditional financial assets—such as stocks, bonds, funds, and real estate—into digital tokens that can be traded on blockchain platforms. Several Chinese firms, including major brokerages, have launched RWA initiatives in Hong Kong in recent months.
“At least two leading brokerages have received informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks to refrain from conducting RWA business offshore,” one source told Reuters. The move is intended to strengthen risk management in this emerging business and ensure that companies’ offerings are backed by legitimate, verifiable assets.
Hong Kong has been actively promoting itself as a hub for digital assets, encouraging firms to prepare for virtual asset trading, investment advisory, and digital asset management. By contrast, mainland China has maintained strict limits on cryptocurrencies since banning trading and mining in 2021 due to financial stability concerns.
Reuters previously reported that Chinese regulators last month instructed major domestic brokers to halt research promoting stablecoins, reflecting Beijing’s efforts to curb excessive domestic enthusiasm for digital currencies.
The advisory comes as Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) conduct a legal review of RWA tokenisation practices, drawing on international experience. The global RWA market is currently valued at roughly $29 billion, though China Merchants Securities forecasts it could exceed $2 trillion by 2030.
It is unclear how long the CSRC’s guidance will remain in effect. Reuters reports that the CSRC, HKMA, and FSTB did not immediately respond to requests for comment, while Hong Kong’s Securities and Futures Commission (SFC) declined to comment.
Chinese Firms Drive Digital Asset Interest in Hong Kong
Several Chinese brokerages and property developers have launched RWA and virtual asset products in Hong Kong. In June, GF Securities’ Hong Kong unit introduced “GF tokens,” a suite of yield-generating products tied to the U.S. dollar, Hong Kong dollar, and offshore renminbi. China Merchant Bank International assisted Shenzhen Futian Investment in raising 500 million yuan ($70.3 million) through a RWA-based digital bond last month.
Property developer Seazen Group also announced plans to set up an institute in Hong Kong to advance RWA tokenisation. The city’s stablecoin licensing regime has further fueled interest, with 77 firms expressing interest in obtaining licenses as of August 31, the HKMA said.
Shares in Chinese companies planning to expand into Hong Kong’s virtual asset market have surged. Guotai Junan International, a state-owned brokerage, saw shares rise over 400% after obtaining regulatory approval to offer cryptocurrency trading in Hong Kong, while Fosun International’s shares jumped 28% in August following news of meetings between its stablecoin team and Hong Kong officials, Reuters reported.
