China tells brokers to pause RWA tokenization in Hong Kong
China's securities regulator informally told domestic brokerages to halt their real-world asset tokenization business in Hong Kong.
At least two major Chinese brokerages received recent guidance from the China Securities Regulatory Commission (CSRC) to pause RWA-related activities. The directive reflects Beijing's caution over digital asset offerings in the offshore financial center.
RWA tokenization converts traditional assets like bonds, stocks, and real estate into blockchain-based tokens for trading. Several Chinese firms and brokerages launched RWA products in Hong Kong over recent months as the city established itself as a digital asset hub.
One source told Reuters the CSRC's directive aims to strengthen risk management in the sector and ensure tokenized products are backed by legitimate business fundamentals. The duration of the pause remains unclear.
RWA tokenization converts traditional assets like bonds, stocks, and real estate into blockchain-based tokens for trading. Several Chinese firms and brokerages launched RWA products in Hong Kong over recent months as the city established itself as a digital asset hub.
One source told Reuters the CSRC's directive aims to strengthen risk management in the sector and ensure tokenized products are backed by legitimate business fundamentals. The duration of the pause remains unclear.
Hong Kong has rolled out licensing regimes for digital assets in recent months, attracting more than 70 firms interested in licenses as of August. Mainland China banned cryptocurrency trading and mining in 2021 and maintains restrictions on digital assets.
Hong Kong authorities launched a legal review of RWA tokenization in June. The global RWA sector is estimated at $29 billion and projected to exceed $2 trillion by 2030, according to RWA.xyz.Chinese firms, including GF Securities and China Merchants Bank International, recently experimented with tokenized products and digital bonds in Hong Kong. The regulatory guidance creates uncertainty for these initiatives.
The CSRC has not issued public statements about the directive to brokerages. Hong Kong's Securities and Futures Commission, which oversees the city's virtual asset licensing, has not commented on the mainland regulator's actions.RWA tokenization allows fractional ownership of traditional assets through blockchain technology. Hong Kong positioned itself as a bridge between mainland China's restrictive crypto policies and global digital asset markets.
The pause affects only Chinese brokerages operating RWA businesses in Hong Kong. International firms and Hong Kong-based companies without mainland Chinese ownership continue operating under existing regulations.
Several tokenized bond offerings launched in Hong Kong during 2025, including products from major Chinese financial institutions. The regulatory guidance may delay or halt additional planned offerings from mainland firms.
Hong Kong regulators have not indicated whether the pause will affect the city's broader digital asset strategy.
Hong Kong authorities launched a legal review of RWA tokenization in June. The global RWA sector is estimated at $29 billion and projected to exceed $2 trillion by 2030, according to RWA.xyz.Chinese firms, including GF Securities and China Merchants Bank International, recently experimented with tokenized products and digital bonds in Hong Kong. The regulatory guidance creates uncertainty for these initiatives.
The CSRC has not issued public statements about the directive to brokerages. Hong Kong's Securities and Futures Commission, which oversees the city's virtual asset licensing, has not commented on the mainland regulator's actions.RWA tokenization allows fractional ownership of traditional assets through blockchain technology. Hong Kong positioned itself as a bridge between mainland China's restrictive crypto policies and global digital asset markets.
The pause affects only Chinese brokerages operating RWA businesses in Hong Kong. International firms and Hong Kong-based companies without mainland Chinese ownership continue operating under existing regulations.
Several tokenized bond offerings launched in Hong Kong during 2025, including products from major Chinese financial institutions. The regulatory guidance may delay or halt additional planned offerings from mainland firms.
Hong Kong regulators have not indicated whether the pause will affect the city's broader digital asset strategy.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
