SHANGHAI, Feb 9 (Reuters) – Investors snapped up real-world-asset-related stocks in China and Hong Kong on Monday, betting they would benefit from Beijing’s move to set up a legal framework for the RWA tokenisation business.
China on Friday said that RWA business – which converts traditional assets like securities and real estate into digital tokens – is not allowed on the mainland. But regulators will vet the offshore issuance of tokens backed by Chinese onshore assets.
RWA had been in a grey area in China, so the guideline “marks a milestone for China’s nascent RWA business and has far-reaching implications,” Guosen Securities said in a report.
This would turn “unregulated growth” of the sector into “a race for compliance,” generating new businesses for investment banks with blockchain technology and cross-border experience in asset securitisation, the brokerage said.
Hong Kong-listed shares of Guotai Junan International (1788.HK), opens new tab, which has virtual asset-related business licenses, jumped more than 6%.
Shenzhen-traded shares of GCL Energy Technology (002015.SZ), opens new tab, which previously raised money via RWA tokenisation in Hong Kong, surged roughly 7% to a five-month high.
Investors also drove up shares in other RWA-related companies including Longshine Technology (300682.SZ), opens new tab, Tansun Technology (300872.SZ), opens new tab and Yusys Technologies (300674.SZ), opens new tab.
Guosen Securities said the new rules will weed out non-compliant projects, but will create opportunities for technology companies providing compliant and efficient data management services for blockchain-based businesses.
Shares of companies providing cryptology-related services including Beijing Certificate Authority (300579.SZ), opens new tab and Sinosun Technology (300333.SZ), opens new tab also rose on Monday.
Reporting by Shanghai newsroom; Editing by Thomas Derpinghaus
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