China Attempts to Curb Asset Tokenisation with Informal Advisory

Tuesday, 23/09/2025 | 04:45 GMT by Arnab Shome
  • At least two “leading” brokerages received informal guidance to halt their RWA business offshore, Reuters reported.
  • The RWA market is projected to exceed $2 trillion by 2030.
Hong Kong skyline
Hong Kong skyline

China’s securities market watchdog has advised multiple local brokerages to pause their real-world asset (RWA) tokenisation business in Hong Kong, Reuters reported today (Tuesday), citing “two sources.”

Digital assets meet tradfi in London at the FMLS25.

RWA Tokenisation Is on the Rise

This comes as the global RWA market touched around $29 billion, according to RWA.xyz, while China Merchants Securities forecast the industry to exceed $2 trillion by 2030.

The RWA tokenisation process allows the conversion of traditional assets such as stocks, bonds, funds and real estate into tradable digital tokens based on blockchains.

Recently, several mainstream brokers, including Robinhood, entered the stock tokenisation market, creating a frenzy around the industry. Other dominant players, particularly in stock tokenisation, are cryptocurrency exchanges.

Meanwhile, several Chinese firms, including brokerages, also entered the tokenisation business and launched RWAs in Hong Kong over the past few months.

The Hong Kong unit of Chinese broker GF Securities launched GF tokens last June, which are a suite of yield-generating products backed by the prices of the US dollar, Hong Kong dollar and offshore renminbi. China Merchants Bank International, a subsidiary of China Merchants Bank, also helped Shenzhen Futian Investment to raise 500 million yuan ($70.29 million) by issuing an RWA-based digital bond.

Seazen Group, a Chinese property developer, also announced its plans to set up an institute in Hong Kong to push RWA tokenisation.

An Informal Advisory to Stop the Boom

The Reuters report outlined that at least two “leading” brokerages received informal guidance from the China Securities Regulatory Commission (CSRC) to halt their RWA business offshore. However, it did not name any company.

Although there is no formal order against RWAs, one of the sources highlighted that the move is to strengthen risk management of the new industry and ensure strong backing for the companies.

Meanwhile, Hong Kong is positioning itself as a digital asset hub in Asia. The Chinese autonomous jurisdiction even introduced a set of regulations to license stablecoin issuers.

Beyond digital assets, Hong Kong has also regained the trust of the mainstream financial industry. The city recorded HK$705 billion in net fund inflows last year, lifting its total assets under management (AUM) to HK$35.1 trillion, according to new data from the city’s financial regulator.

Beijing’s informal move to halt RWA businesses comes as two Hong Kong agencies – the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) – conduct a legal review of RWA tokens.

Read more stories on Hong Kong:

China’s securities market watchdog has advised multiple local brokerages to pause their real-world asset (RWA) tokenisation business in Hong Kong, Reuters reported today (Tuesday), citing “two sources.”

Digital assets meet tradfi in London at the FMLS25.

RWA Tokenisation Is on the Rise

This comes as the global RWA market touched around $29 billion, according to RWA.xyz, while China Merchants Securities forecast the industry to exceed $2 trillion by 2030.

The RWA tokenisation process allows the conversion of traditional assets such as stocks, bonds, funds and real estate into tradable digital tokens based on blockchains.

Recently, several mainstream brokers, including Robinhood, entered the stock tokenisation market, creating a frenzy around the industry. Other dominant players, particularly in stock tokenisation, are cryptocurrency exchanges.

Meanwhile, several Chinese firms, including brokerages, also entered the tokenisation business and launched RWAs in Hong Kong over the past few months.

The Hong Kong unit of Chinese broker GF Securities launched GF tokens last June, which are a suite of yield-generating products backed by the prices of the US dollar, Hong Kong dollar and offshore renminbi. China Merchants Bank International, a subsidiary of China Merchants Bank, also helped Shenzhen Futian Investment to raise 500 million yuan ($70.29 million) by issuing an RWA-based digital bond.

Seazen Group, a Chinese property developer, also announced its plans to set up an institute in Hong Kong to push RWA tokenisation.

An Informal Advisory to Stop the Boom

The Reuters report outlined that at least two “leading” brokerages received informal guidance from the China Securities Regulatory Commission (CSRC) to halt their RWA business offshore. However, it did not name any company.

Although there is no formal order against RWAs, one of the sources highlighted that the move is to strengthen risk management of the new industry and ensure strong backing for the companies.

Meanwhile, Hong Kong is positioning itself as a digital asset hub in Asia. The Chinese autonomous jurisdiction even introduced a set of regulations to license stablecoin issuers.

Beyond digital assets, Hong Kong has also regained the trust of the mainstream financial industry. The city recorded HK$705 billion in net fund inflows last year, lifting its total assets under management (AUM) to HK$35.1 trillion, according to new data from the city’s financial regulator.

Beijing’s informal move to halt RWA businesses comes as two Hong Kong agencies – the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) – conduct a legal review of RWA tokens.

Read more stories on Hong Kong:

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 7210 Articles
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