Hong Kong ups competitiveness with new stablecoin laws
Hong Kong's stablecoin bill and its continued issuance of digital asset policies give it a competitive edge in the race to become the global digital assets hub, says the city-state's financial secretary, Paul Chan.
In May, Hong Kong legislators passed the Stablecoin Ordinance, becoming the first major economy with an act fully dedicated to stablecoins. It takes effect in August, and according to Chan, it will make Hong Kong a haven for digital asset activity.
'We have also just completed the legislation of stablecoins, which will come into effect on August 1, making Hong Kong one of the first jurisdictions in the world to establish a statutory regulatory framework for stablecoins,' Chan stated in his speech at the Wealth Management Expo.
Hong Kong's stablecoin pursuits come amid a change of tune from mainland China, which has been an anti-digital asset for years. Speaking at a forum in Shanghai, the Governor of the People's Bank of China (PBoC), Pan Gongsheng, acknowledged the increasing importance of stablecoins in global commerce and the need for China to keep up.
Stablecoins and other blockchain innovations 'are enabling real-time settlement at the point of payment, fundamentally reshaping the traditional payment infrastructure and significantly shortening the cross-border payment chain,' he told the attendees.
However, China has not announced any plans to let up on its digital asset restrictions, leaving Hong Kong as the testing ground for Chinese firms.
Chinese firms are already exploring stablecoins in Hong Kong. E-commerce giant JD.com (NASDAQ: JD) has been testing a Hong Kong dollar-backed stablecoin and wrapped up the second phase of its pilot in May. The company, through its Hong Kong subsidiary, expects to obtain a license in the fourth quarter and launch its stablecoin by year-end. Ant Group, an affiliate of China's second-largest company by market cap, Alibaba (NASDAQ: BABAF), is also pursuing a stablecoin license in Hong Kong.
Hong Kong builds on regulatory clarity with new policy statement
Meanwhile, the city-state has published yet another policy statement offering more clarity on digital asset regulation.
Dubbed 'Policy Statement 2.0 on the Development of Digital Assets in Hong Kong,' it introduces the new 'LEAP' framework that doubles down on stablecoin and asset tokenization policies. The first policy statement was published in October 2022.
Under LEAP, the city will unify its regulatory framework for all virtual asset service providers (VASPs), from exchanges and stablecoin issuers to custodians and brokerages. The Securities and Futures Commission (SFC) will spearhead the licensing of these VASPs, with the Hong Kong Monetary Authority (HKMA) charged with the legal oversight over the tokenization of real-world assets (RWAs).
The new policy also intends to push for tokenization, with the government pledging to regularly issue tokenized bonds. It will also incentivize market players to tokenize RWAs through clearer laws and expanded market opportunities, such as allowing secondary trading of tokenized exchange-traded funds (ETFs).
Hong Kong will promote 'the tokenisation of a broader range of assets and financial instruments, demonstrating the versatility of this technology across sectors such as precious metals (e.g. gold) and non-ferrous metals, and renewable energy (e.g. solar panels),' the policy statement said.
In one of the more impactful proposals for investors, the policy will allow private funds and family offices to claim tax breaks on profits generated from tokenized securities and digital asset holdings.
The government also pledged to partner with academia to strengthen industry talent and welcomed proposals on how it can better support real-world usage of stablecoins.
'We strive to build a more flourishing digital asset ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation, such that it will bring benefits to both the economy and society while consolidating Hong Kong's leading position as an international financial centre,' commented Chan.
Industry experts noted that the new policy statement came barely a week after the United States Senate passed the GENIUS Act, which establishes a regulatory framework for stablecoins. According to Andrew Fei, a partner at King & Wood Mallesons law firm, accelerated regulatory efforts show that the 'global race for digital assets innovation is well underway.'
Watch | Spotlight On: Centi Franc—the truly stable stablecoin
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
33 minutes ago
- Telegraph
Hong Kong tycoon banks £45m from Superdrug
Hong Kong billionaire Sir Li Ka-shing has banked £45m from Superdrug after a surge in demand for low-priced beauty brands boosted sales. The British retailer paid out the £45m dividend in 2024 to its owner, AS Watson, which is part of Sir Ka-shing's Chinese conglomerate CK Hutchison, according to new filings. Sir Ka-shing, 96, has received £170m in payouts from the high street retailer since 2021. The latest dividend follows a surge in profits, despite Superdrug warning that 2024 had been ' another tough year for the retail sector '. Superdrug recorded a 23pc jump in pre-tax profits to £137m last year, which it said was mainly down to strong sales growth as revenues rose 7pc to hit £1.6bn. Bosses said this was because cheaper own-brand beauty ranges were more popular during the year, as hard-up shoppers were more sensitive to price rises. Peter Macnab, the Superdrug chief executive, said: 'Available, affordable and inclusive all remain at the heart of what we do, and clearly our excellent product offering, delivered with vibrancy and convenience, is resonating with more and more of today's shoppers.' Superdrug has been under the ownership of Sir Ka-shing's Chinese conglomerate since 2002. As one of Asia's richest men, he also owns other leading UK brands, such as pub chain Greene King. His conglomerate part-owns the Vodafone and Three network in the UK. Sir Ka-shing started his business career at the age of 22 with the launch of a manufacturing company in 1950 that eventually became the largest supplier of plastic flowers in Asia. Since then, his empire has ballooned, with Sir Ka-shing's company now controlling ports, infrastructure and telecoms across the West. Earlier this year, it was thrust into the spotlight after Donald Trump criticised CK Hutchinson's ownership of two ports in the Panama Canal. The US president argued that America should 'take back' the ports because of growing Chinese influence. CK Hutchison subsequently sold the ports to US investment giant BlackRock. The company has denied that the Panama sale was politically motivated. However, the move to sell the ports sparked a backlash from Beijing, which ordered Chinese state-owned businesses to stop doing deals with Sir Ka-shing's CK Hutchison conglomerate. A spokesman for Superdrug said: 'It is our responsibility to reward our shareholders, and the dividends paid are appropriate to our business size and situation, as well as the revenue delivered by Superdrug in 2024. We are thankful for their support in making Superdrug the successful business it is today.'
Reuters
40 minutes ago
- Reuters
Breakingviews - Ports expose Li family's global dealmaking dilemma
HONG KONG, July 3 (Reuters Breakingviews) - Li Ka-shing believed in the power of combined forces, so he named his business Cheung Kong Industries after China's Yangtze River, which aggregates numerous tributaries. The tycoon, now 96, built his plastics manufacturer into a global retail-to-telecoms conglomerate through a wave of acquisitions. Three-quarters of a century later, a battle over a waterway on the other side of the world reflects how a profound shift in geopolitics is forcing the empire of Hong Kong's richest man into a tricky retreat. Conditions for dealmaking are less favourable for Li's 60-year-old son Victor, who in 2018 took charge of CK Hutchison ( opens new tab, the holding company for the family's non-real estate interests. His attempt to sell the group's overseas ports business, including two facilities at either end of the Panama Canal, to BlackRock (BLK.N), opens new tab and the Aponte family's MSC Mediterranean Shipping Company for $23 billion exemplifies the problems he faces: the conglomerate may not be fit for the era of U.S.-China rivalry. The Hong Kong-listed company's operation of the Panama ports faced scrutiny after U.S. President Donald Trump claimed China was running the strategically important waterway. Two-thirds of all cargo passing through the Panama Canal originates from, or is destined for, the United States. Panamanian authorities launched an audit, setting the stage to potentially strip the company of the concession. When it was announced in March, the sale appeared an elegant way for Hutchison to extract itself from controversy. Yet China's state media, which has for years criticised the Li family for disposing of assets in mainland China and Hong Kong, accused the billionaire family of selling out Chinese overseas interests to the United States. With the deal caught between Beijing and Washington, and a July 27 deadline, opens new tab for exclusive negotiations between buyers and seller fast approaching, it is unclear if Hutchison can secure the approvals it needs to go ahead. Cosco Shipping is one of several Chinese state-backed companies in talks to invest in the multinational bid consortium, Bloomberg reported, opens new tab last month, citing sources. The Li clan, which owns 30% of Hutchison, have always bought and sold. The elder Li acquired a substantial stake in Hutchison Whampoa from HSBC in 1979, becoming the first Chinese national to take control of a British-style 'Hong' trading house. Major disposals include selling its Indian mobile business to Vodafone for $11 billion in 2007. Hutchison and its subsidiaries have been involved in M&A transactions worth $212 billion over the past decade, Dealogic data shows. This includes a $90 billion reorganisation in 2015 which separated its property assets into a new entity called CK Asset ( opens new tab. That rejig was supposed to unlock value. But Hutchison's market capitalisation has since more than halved to $24 billion. The proposed ports deal would be the company's largest sale this century. Instead of offloading just the Panama concessions, Hutchison opted to sell 43 ports in 23 countries. Ports brought in one-fifth of the company's operating profit in 2024, while the Chinese facilities it plans to retain generated just 9% of the unit's revenue in that year. If the deal goes ahead, Hutchison's core business would rest on three remaining units: telecoms, retail and infrastructure. Yet the ports saga has revealed an intractable problem. The rest of the world increasingly sees Hutchison not as a Hong Kong capitalist conglomerate but as a Chinese company. Beijing's negative reaction to the proposed sale confirms the situation is more nuanced, but also underscores the challenges the company faces. Attitudes to Chinese companies operating overseas have hardened following the Covid pandemic, U.S. concerns over the country's military expansion, and its technology and trade practices. Beijing's security crackdown on Hong Kong following anti-government protests in 2019 has also made other countries warier of companies based in the former British colony. This leaves Hutchison, which generates just 12% of its revenue from Hong Kong and mainland China, facing greater scrutiny as an owner, potential buyer, or seller of assets. The conundrum is evident in its depressed market capitalisation: the company is trading at just one-third of book value, LSEG data shows. Geopolitical uncertainty and aversion to Chinese equities are partly to blame, as is the so-called conglomerate discount which investors typically attach to companies with diverse businesses. Mergers and acquisitions are one way to eliminate that discount. But the ports situation leaves a big question mark over whether the Li family can deal their way out of the value trap. Though Hutchison shares jumped by a third on news of the deal, they have since retreated. Despite the setback, Hutchison is still interested in snapping up assets in Europe, where it generates more than half its revenue. In February, its CK Infrastructure unit submitted a preliminary, opens new tab 7 billion pound ($9.60 billion) bid for the UK's Thames Water, the Financial Times reported citing people familiar with the matter, though the offer did not succeed. Yet despite being one of the largest overseas investors in the United Kingdom, Hutchison is getting a mixed reaction there too: it acquired Phoenix Energy, a gas distribution network in Northern Ireland, for $1.1 billion in 2024, Dealogic data shows. In 2023, though, it accepted a minority position when merging its Three mobile telecom unit with rival Vodafone. The Lis are hardly alone in facing greater M&A scrutiny. Governments are embracing broader definitions for national security and factoring in economic considerations when reviewing transactions. They may block acquisitions or impose conditions on overseas takeovers, as the United States recently did with the acquisition of U.S. Steel by Japanese rival Nippon Steel (5401.T), opens new tab. Meanwhile, China is closely scrutinising transactions that could appear to endorse the trade policies of the Trump administration, three lawyers specialising in M&A and antitrust told Reuters Breakingviews. If Hutchison finds it harder to buy and sell assets, one alternative is to pursue stock market listings and spinoffs for its global telecom or retail assets. In August last year, CK Infrastructure ( opens new tab established a secondary stock market listing in London. But the unit's market value has since fallen to $17 billion. Maintaining multiple listings will raise costs and may not be sufficient to deflect geopolitical tensions. The group's global structure and Hong Kong stock market listing look increasingly awkward in an era when investors no longer prize geographic diversification. That could eventually lead to a fuller breakup. The outlook for Hutchison will be less bleak if markets like Europe, Australia and Asia opt to improve ties with Beijing, despite Washington's attempt to isolate the world's second largest economy. A green light for the ports sale, possibly as part of a U.S.-China trade deal, would also help lift the gloom. For now, however, the sale that was supposed to solve a problem has instead revealed a sea of risks facing the Li family's empire. Follow Una Galani on Linkedin, opens new tab and X, opens new tab.
Geeky Gadgets
an hour ago
- Geeky Gadgets
Is One UI 8.0 Beta 3 Finally Stable? Massive 1GB Update Brings Key Fixes
Samsung has rolled out the third beta of One UI 8.0 for the Galaxy S25 Ultra, offering a substantial 1GB update. While it does not introduce new features, this release focuses on enhancing system stability, resolving bugs, and strengthening security. For Galaxy S25 Ultra users, this update represents a significant step in refining the overall user experience. Below is a detailed breakdown of what this update brings to the table in a new video from Sakitech. Key Highlights of the Update The One UI 8.0 Beta 3 update, identified by its version ending in ZYFA, is built on Android 16, showcasing the latest advancements in mobile software. At over 1GB in size, it includes July-level security patches, making sure that your device remains protected against the latest threats. This update reflects Samsung's commitment to delivering timely and meaningful improvements to its flagship devices. Key highlights include: Integration with Android 16 for enhanced compatibility and performance. July 2025 security patches to address emerging vulnerabilities. Focus on stability and usability improvements rather than introducing new features. This update underscores Samsung's dedication to providing a secure and seamless user experience for its Galaxy S25 Ultra users. Bug Fixes: Addressing Persistent Issues The One UI 8.0 Beta 3 update resolves several critical bugs that may have impacted the usability of the Galaxy S25 Ultra. These fixes aim to improve the overall functionality of the device, making sure a smoother and more reliable experience. Key bug fixes include: Resolution of the status bar overlap issue , resulting in a cleaner and more organized interface. , resulting in a cleaner and more organized interface. Fixes for swipe-to-type keyboard input errors , allowing smoother and more accurate text entry. , allowing smoother and more accurate text entry. Correction of SPAN-related errors and other minor glitches that could disrupt the user experience. By addressing these issues, Samsung has taken significant steps to enhance the day-to-day usability of the Galaxy S25 Ultra, making sure that users encounter fewer distractions and interruptions. Performance Enhancements: Smoother and More Reliable Performance optimization is a central focus of this update, with several improvements designed to make the Galaxy S25 Ultra more dependable for both casual and intensive use. Users can expect the following enhancements: Improved system stability , reducing the likelihood of unexpected crashes and freezes. , reducing the likelihood of unexpected crashes and freezes. Smoother and more fluid animations , contributing to a visually appealing user experience. , contributing to a visually appealing user experience. Minimized stuttering during multitasking and app usage, making sure seamless operation even during demanding tasks. These enhancements not only improve the device's reliability but also make it more enjoyable to use, particularly for users who rely on their smartphones for productivity and entertainment. How to Access the Beta Program For those eager to explore the latest software, the One UI 8.0 Beta 3 is available through the Samsung Members app. Designed specifically for the Galaxy S25 series, this beta version has been praised for its stability, with early testers reporting minimal errors. By participating in the beta program, users can: Gain early access to upcoming features and improvements. Provide valuable feedback to Samsung, contributing to the refinement of the final release. Experience the latest advancements in mobile software before the official rollout. To join the beta program, simply download the Samsung Members app, navigate to the beta section, and follow the registration process. This is an excellent opportunity to preview the polished experience that Samsung aims to deliver with the final release of One UI 8.0. Security Upgrades: Staying Ahead of Threats Security remains a top priority in this update. The inclusion of July-level security patches ensures that your device is protected against the latest vulnerabilities. These patches address a range of potential threats, from malware to unauthorized access attempts, safeguarding your personal data and maintaining the integrity of your device. Samsung's proactive approach to security demonstrates its dedication to protecting users in an increasingly complex digital landscape. By staying ahead of emerging threats, the company continues to build trust and confidence among its user base. A Refined Experience for Galaxy S25 Ultra Users The One UI 8.0 Beta 3 update for the Galaxy S25 Ultra is a significant step toward delivering a polished and reliable final release. While it does not introduce new features, its focus on stability, performance, and security makes it a valuable upgrade for users. With smoother animations, enhanced reliability, and robust security measures, this update prepares the Galaxy S25 Ultra for both everyday use and demanding tasks. For those participating in the beta program, this version offers a glimpse into the refined experience that Samsung is working to achieve. By addressing critical bugs, optimizing performance, and prioritizing security, the One UI 8.0 Beta 3 update sets the stage for a seamless and dependable user experience. Check out more relevant guides from our extensive collection on One UI 8.0 that you might find useful. Source & Image Credit: sakitech Latest Geeky Gadgets Deals Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy
