China’s CSRC Presses Brokers to Halt RWA Tokenization in Hong Kong

China's securities regulator has quietly instructed domestic brokers to suspend blockchain-based tokenization of real-world assets in Hong Kong. The MOVE reflects Beijing's enduring caution toward offshore digital asset ventures, even as global interest in RWA projects surges.

Hong Kong's ambition to become a digital asset hub now faces headwinds from mainland regulators. The CSRC's informal directive specifically targets tokenization of stocks, bonds, and real estate - sectors where Chinese firms had been particularly active. Market reaction was immediate, with shares of affected brokers tumbling.

This intervention underscores China's bifurcated approach to digital assets: maintaining strict prohibitions on crypto trading domestically while cautiously monitoring offshore developments. The regulator appears determined to prevent RWA innovation from outpacing its risk management frameworks.