Chinese authorities have urged certain brokerage firms to temporarily pause their real-world asset (RWA) tokenization operations in Hong Kong.

RWA tokenization is the process by which traditional assets, whether tangible or financial, are digitally represented in the form of tokens on a cryptocurrency network.

At least two major Chinese brokerage firms, including GF Securities (Hong Kong unit) and China Merchants Bank International (CMBI), have recently received informal instructions from the country's Securities Regulatory Commission (CSRC), urging them to curb their tokenization operations outside the country. This measure comes after several firms in the Asian giant began offering these types of products in Hong Kong in recent months.

According to international media, these recommendations seek to strengthen risk management and ensure that companies' proposals have solid and legitimate support. It has not yet been determined how long the CSRC guidelines will remain in effect.

The measure comes at a time when Hong Kong has accelerated its strategy to position itself as a digital asset hub in Asia. In fact, in May 2025,\the Legislative Council approved a law requiring stablecoin issuers to be licensed by the Hong Kong Monetary Authority (HKMA). The bill was approved with the intention of facilitating regulated and transparent operations for companies.

For its part, China, which once led global bitcoin trading and mining, now maintains a cautious stance toward cryptocurrencies, after banning their trading and mining in 20 21 due to concerns about the stability of the financial system.

However, in August, reports surfaced indicating that China is considering issuing yuan-backed stablecoins, aiming to counter the influence of the US dollar on international trade. This would mark a notable shift in its approach to cryptocurrencies. According to RWA.xyz, the global tokenized real-world asset (RWA) market currently has a total on-chain value of $28.59 billion.