Haciyev Reşit 
China’s securities regulator, the CSRC (China Securities Regulatory Commission), has given informal instructions to leading local brokerages to suspend their real-world asset (RWA) tokenization activities in Hong Kong. According to a Reuters report citing sources familiar with the matter, this move reflects Beijing’s growing concerns over the rapid expansion of the overseas digital asset market.
China’s Cautious Approach to RWA
RWA (Real World Asset) tokenization refers to the process of converting traditional financial assets such as stocks, bonds, funds, and real estate into digital tokens that can be traded on the blockchain. In recent months, many Chinese brokerages and financial institutions had launched Hong Kong-based RWA projects.
According to sources, at least two major brokerages received warnings from the CSRC to halt their RWA operations in overseas markets. The warning is said to have been issued in order to strengthen risk management and ensure that only strong, legitimate companies operate in this space.
Hong Kong’s Push to Become a Digital Asset Hub
Hong Kong has recently been working to strengthen its vision of becoming a global hub for digital assets as one of Asia’s leading financial centers. Last year, it introduced several new regulations and licensing processes for virtual asset trading, investment advisory, and asset management.
By contrast, China banned cryptocurrency trading and mining in 2021, adopting a cautious stance toward digital assets to preserve financial stability. In recent months, stricter measures have also been introduced in areas such as stablecoin research and RWA tokenization.
Surge in Chinese Firms’ Shares
Hong Kong’s virtual asset regulations and RWA initiatives have also sparked volatility in Chinese companies’ shares.
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Guotai Junan International: After securing regulatory approval for crypto trading in Hong Kong in June, its shares surged by more than 400%.
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Fosun International: Shares rose 28% after reports that its executives had met with senior Hong Kong officials together with a stablecoin team.
GF Securities launched an income-generating product package called “GF tokens” in June, while China Merchant Bank International (CMBI) raised 500 million yuan (USD 70 million) last month through the issuance of RWA-based digital bonds. In addition, the property developer Seazen Group established a dedicated institute in Hong Kong to promote RWA tokenization.
Ongoing Uncertainty
It remains unclear how long this informal guidance from the CSRC will remain in effect. Sources requested anonymity as they were not authorized to speak publicly on the matter. The CSRC, HKMA, and FSTB did not respond to Reuters’ requests for comment, while Hong Kong’s Securities and Futures Commission (SFC) declined to comment.
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