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, which has virtual asset-related business licenses, jumped more than 6%.
Shenzhen-traded shares of GCL Energy Technology, 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, Tansun Technology and Yusys Technologies.
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 and Sinosun Technology also rose on Monday.
(Reporting by Shanghai newsroom; Editing by Thomas Derpinghaus)
