Chinese financial authorities recommend major companies suspend real asset tokenization businesses

Chinese financial authorities have advised major companies to suspend businesses related to real-world assets (RWA).

On the 22nd (local time), Reuters, citing informed sources, reported, "In recent weeks the China Securities Regulatory Commission (CSRC) has advised major securities firms and companies to suspend overseas and Hong Kong RWA businesses."

In recent months, as Chinese companies have consecutively launched RWA products based in Hong Kong, Chinese authorities appear to have expressed concerns. A source said, "This regulatory guidance is intended to strengthen risk management of new businesses" and "is a measure to verify whether companies' businesses are on a sound and legal basis."

The outlet said, "China is showing moves to curb interest in virtual assets," and "last month Chinese regulators asked local securities firms to stop publishing positive research on stablecoins," it added.

Meanwhile, China banned virtual asset (cryptocurrency) trading and mining in 2021.