China Puts Brakes on Hong Kong’s RWA Boom
TL;DR Breakdown
- China’s CSRC informally told some brokerages to pause RWA tokenisation in Hong Kong.
- Hong Kong is pushing ahead with RWA and digital asset rules, with HKMA and FSTB.
- The RWA market is $29B today, projected to exceed $2T by 2030.
China’s securities regulator has reportedly asked some local brokerages to suspend their real-world asset (RWA) tokenisation business in Hong Kong. People familiar with the matter suggest that this move shows Beijing’s growing unease over the rapid offshore expansion of digital assets.
RWA tokenisation has surged in Hong Kong this year. Several Chinese firms have already rolled out tokenised products as the city courts digital finance and seeks to cement its role as Asia’s crypto hub. The process of converting traditional assets like stocks, bonds, funds, or even real estate into blockchain-based tokens seems to be picking up the trend.
China Moves to Curb RWA Hype
As per the report, at least two leading brokerages received the informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks. One added that the regulator’s message was focused on risk management, ensuring firms’ RWA products are backed by “strong, legitimate businesses.”
The notice comes as Hong Kong accelerates efforts to attract virtual asset trading, advisory, and management services. However, mainland China remains cautious after its 2021 ban on crypto trading and mining over financial stability concerns. Just last month, regulators also instructed major brokers to stop publishing research promoting stablecoins.
The global digital assets market went on to breach the $4 trillion mark in 2025. Bitcoin has been the frontrunner of the bull rallies. BTC hit its all-time high (ATH) of above $124K on August. Bitcoin price has dipped by almost 10% since then. It is trading at an average price of $112,186 at the press time.
Hong Kong officials have taken a different stance. In June, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) said they were conducting a legal review of RWA tokenisation, drawing on global best practices.
Chinese Brokers Ordered to Pause
The market opportunity is sizeable. The global RWA market is worth about $29 billion, according to data from RWA.xyz. It is forecasted suggesting it could exceed $2 trillion by 2030.
Chinese players have been active. GF Securities’ Hong Kong arm launched “GF tokens” in June, offering yield products linked to the US dollar, Hong Kong dollar, and offshore renminbi. And last month, China Merchants Bank International helped Shenzhen Futian Investment raise 500 million yuan ($70 million) via a tokenised bond.
It is unclear how long the CSRC’s informal restrictions will remain in place. The CSRC, HKMA, and FSTB did not respond to requests for comment. Hong Kong’s Securities and Futures Commission (SFC) declined to comment. GF Securities and CMBI also did not respond to queries.
