China Hits Pause on Hong Kong RWA Tokenization Amid Digital Asset Boom

The post China Hits Pause on Hong Kong RWA Tokenization Amid Digital Asset Boom appeared first on Coinpedia Fintech News

Hong Kong is racing to become Asia’s digital asset hub, but Beijing has just hit the pause button. According to Reuters, the China Securities Regulatory Commission (CSRC) has advised at least two major brokerages to halt their real-world asset (RWA) tokenization business in Hong Kong.

The move reflects growing caution in Beijing as Chinese firms rush into the offshore digital asset market.

Beijing’s Warning

The guidance from CSRC is informal and not a public directive. Sources told Reuters it’s aimed at “strengthening risk management of a new business and making sure the claims made by companies are backed by strong, legitimate businesses.”

This comes as Hong Kong has been actively welcoming digital assets. Over the past year, the city has launched a stablecoin licensing regime and begun legal reviews of RWA tokenization through the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA).

Why RWA Tokenization Matters

RWA tokenization turns traditional assets like stocks, bonds, and real estate into blockchain-based tokens. The market potential is huge.

Data from RWA.xyz values the global market at $29 billion today, with forecasts reaching $2 trillion by 2030. Other reports, like the 2025 Skynet RWA Security Report, project $16 trillion. Animoca Brands suggests the tokenization of RWAs could even unlock a $400 trillion traditional finance market.

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Chinese firms are already moving fast. GF Securities’ Hong Kong unit launched “GF Tokens” backed by multiple currencies. China Merchants Bank International helped issue a 500 million yuan digital bond for a Shenzhen-based firm. Even property developer Seazen is entering the space.

Investor Excitement and Stock Surges

Investor enthusiasm is high. Shares of Guotai Junan International jumped more than 400% in June after the firm gained approval for crypto trading in Hong Kong. Fosun International’s stock rose 28% after stablecoin-related meetings with Hong Kong officials.

Beijing, however, is keeping a close eye. China banned cryptocurrency trading and mining in 2021 and last month instructed brokers to stop publishing research promoting stablecoins.

The CSRC’s guidance on RWA tokenization is part of this ongoing caution.

Two Approaches, One Region

Asia is now seeing a clear divide. Hong Kong is actively courting global investment with digital asset-friendly policies, while Beijing is tightening oversight to curb risk.

The result is a tension that could define the region’s next chapter in digital assets. Hong Kong’s momentum is real, but Beijing’s caution paints a different picture.

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FAQs

What is RWA tokenization and why is it important?

RWA tokenization turns real-world assets like stocks or real estate into digital tokens on blockchain, making trading and investment faster and more efficient.

Why did Beijing ask brokerages to pause RWA tokenization in Hong Kong?

Beijing wants to ensure risk control and verify that tokenized assets have real, legitimate backing before the market grows too quickly.

What is the market potential for RWA tokenization globally?

The RWA tokenization market is valued at $29B today, with forecasts suggesting it could reach up to $2T by 2030 as adoption accelerates.

How have investors reacted to Hong Kong’s digital asset initiatives?

Investor excitement is strong, with some Hong Kong-listed firms seeing major stock surges after gaining crypto or tokenization approvals.