Caixin: Hong Kong is one of the offshore issuance locations for RWA. China International Capital Corporation Hong Kong has engaged with public chains and exchanges to explore cooperation.

Caixin News, February 21, reports that “Strict Regulation of Overseas RWA” is the main tone of Document No. 42, “Notice on Further Preventing and Disposing of Risks Related to Virtual Assets and Others.” It points out that “strict regulation of overseas” is the overall tone of the document. Hong Kong is one of the overseas issuance locations for RWA. According to knowledgeable regulators, RWA based on Chinese Hong Kong assets are not within the scope of regulation under Document No. 42 and are not under the jurisdiction of domestic regulatory authorities. Currently, there are no underlying assets based on domestic securities or funds in Chinese Hong Kong or other overseas RWA. If there are, they are under the responsibility of the China Securities Regulatory Commission’s Institutional Department. Additionally, it was previously prohibited across the board. Now, it is not said that “all are prohibited,” but there is strict regulation of domestic assets’ outbound RWA. This does not imply “encouragement,” and should not be interpreted as “promoting development” or “rapid expansion,” but as “strict regulation.”

According to Caixin, on the weekend following the release of Document No. 42, China International Capital Corporation’s Hong Kong team has already been engaging with major public chains and exchanges to explore business cooperation opportunities. Some blockchain project leaders have also expressed hope to collaborate with relevant investment banks and intermediary institutions to explore business opportunities. Ant Group and JD.com have both shown high concern regarding policy changes.