Latest news with #ThePeople'sBankofChina
Mint
08-08-2025
- Business
- Mint
China Tells Brokers to Stop Touting Stablecoins to Cool Frenzy
China told local brokers and other bodies to stop publishing research or hold seminars to promote stablecoins, seeking to rein in the asset class to avoid instability. Some leading brokerages and think tanks in late July and earlier this month received guidance from financial regulators, urging them to cancel seminars and halt disseminating research on stablecoins, people familiar with the matter said. Regulators are also concerned that stablecoins could be exploited as a new tool for fraudulent activities in mainland China, said the people, who asked not to be identified because the details are private. While China has a blanket ban on crypto-related transactions, recent official comments have stoked speculation the country is warming to the industry. Authorities have also given the green light to develop Hong Kong as a digital asset hub and the city this month rolled out new legislation governing stablecoin issuers, prompting a surge in interest from mainland Chinese firms. The China Securities Regulatory Commission and The People's Bank of China didn't immediately respond to faxed requests for comments. 'Chinese policymakers don't favor too much fanfare in some topics just to avoid a herd rush to any particular asset class,' said Christopher Wong, a Singapore based currency strategist at Oversea-Chinese Banking Corp. 'There's still a worry that not everyone knows adequately about crypto and policymakers being pragmatic don't want herd mentality when investors buy into something that they do not know what the risks are.' Despite China's crypto ban, there has been brisk over-the-counter digital asset trading in the country. It reached $75 billion in the first nine months of 2024, according to estimates from Chainalysis Inc., in evidence of a large presence of avenues for such transactions. Illicit fundraising activities linked to virtual currencies and stablecoins have also flourished amid the hype, prompting China's local authorities including those in Beijing, Suzhou and Zhejiang province to issue risk warnings in the past month. Stablecoins, typically backed by cash-like assets and issued by private firms, are gaining traction as a faster, cheaper option for cross-border payments. Most are pegged to the dollar and backed by US assets like short-term Treasuries, with the world's total supply projected to reach as much as $3.7 trillion by 2030. The regulators are stepping in after recent official comments stoked speculation the country is warming to the notion of cyptocurrencies that track the yuan, as it seeks to challenge the US dollar's dominance in global finance and promote the usage of the Chinese currency. PBOC Governor Pan Gongsheng said in June that stablecoins could revolutionize international finance, particularly as rising geopolitical tensions highlight the fragility of traditional payment systems. Hong Kong, widely viewed as a regulatory sandbox for China, is one of a number of markets in the Asia-Pacific region to have pushed forward with a licensing regime of its own in recent months. As of Friday, Hong Kong has granted license for 11 crypto exchanges, alongside 44 companies with permit to trade digital assets for clients. These include Chinese state-backed firms such as CMB International Securities Ltd., Guotai Junan Securities Ltd. and TFI Securities and Futures Ltd. US President Donald Trump on July 18 signed the first federal bill to regulate stablecoins, hailing it as 'giant step to cement American dominance of global finance and crypto technology.' The vast majority of stablecoins in circulation today are pegged to the US dollar. With assistance from Suvashree Ghosh, Julia Zhong and Kiuyan Wong. This article was generated from an automated news agency feed without modifications to text.
Business Times
08-08-2025
- Business
- Business Times
China tells brokers to stop touting stablecoins to cool frenzy: sources
[BEIJING] China told local brokers and other bodies to stop publishing research or hold seminars to promote stablecoins, seeking to rein in the asset class to avoid instability. Some leading brokerages and think tanks in late July and earlier this month received guidance from financial regulators, urging them to cancel seminars and halt disseminating research on stablecoins, people familiar with the matter said. Regulators are also concerned that stablecoins could be exploited as a new tool for fraudulent activities in mainland China, said the people, who asked not to be identified because the details are private. While China has a blanket ban on crypto-related transactions, recent official comments have stoked speculation the country is warming to the industry. Authorities have also given the green light to develop Hong Kong as a digital asset hub and the city this month rolled out new legislation governing stablecoin issuers, prompting a surge in interest from mainland Chinese firms. The China Securities Regulatory Commission and The People's Bank of China (PBOC) did not immediately respond to faxed requests for comments. 'Chinese policymakers don't favour too much fanfare in some topics just to avoid a herd rush to any particular asset class,' said Christopher Wong, a Singapore based currency strategist at Oversea-Chinese Banking Corp. 'There's still a worry that not everyone knows adequately about crypto and policymakers being pragmatic don't want herd mentality when investors buy into something that they do not know what the risks are.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Despite China's crypto ban, there has been brisk over-the-counter digital asset trading in the country. It reached US$75 billion in the first nine months of 2024, according to estimates from Chainalysis, in evidence of a large presence of avenues for such transactions. Illicit fundraising activities linked to virtual currencies and stablecoins have also flourished amid the hype, prompting China's local authorities including those in Beijing, Suzhou and Zhejiang province to issue risk warnings in the past month. Stablecoins, typically backed by cash-like assets and issued by private firms, are gaining traction as a faster, cheaper option for cross-border payments. Most are pegged to the US dollar and backed by US assets like short-term Treasuries, with the world's total supply projected to reach as much as US$3.7 trillion by 2030. The regulators are stepping in after recent official comments stoked speculation the country is warming to the notion of cyptocurrencies that track the yuan, as it seeks to challenge the US dollar's dominance in global finance and promote the usage of the Chinese currency. PBOC governor Pan Gongsheng said in June that stablecoins could revolutionise international finance, particularly as rising geopolitical tensions highlight the fragility of traditional payment systems. Hong Kong, widely viewed as a regulatory sandbox for China, is one of a number of markets in the Asia-Pacific region to have pushed forward with a licensing regime of its own in recent months. As of Friday, Hong Kong has granted licence for 11 crypto exchanges, alongside 44 companies with permit to trade digital assets for clients. These include Chinese state-backed firms such as CMB International Securities, Guotai Junan Securities (Hong Kong) and TFI Securities and Futures. US President Donald Trump on Jul 18 signed the first federal bill to regulate stablecoins, hailing it as 'giant step to cement American dominance of global finance and crypto technology.' The vast majority of stablecoins in circulation today are pegged to the US dollar. BLOOMBERG
Business Recorder
07-05-2025
- Business
- Business Recorder
China stocks jump at open on trade optimism, stimulus hopes
HONG KONG: Chinese markets opened higher on Wednesday, buoyed by investor optimism ahead of upcoming Sino-US trade talks this weekend and Beijing's plans to roll out additional stimulus measures. The blue-chip CSI 300 Index jumped 1.4% at open, the highest level since April 3, while the Shanghai Composite Index climbed 1.2%. In Hong Kong, the benchmark Hang Seng Index jumped 2.2% to the highest level in nearly five weeks. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official in Switzerland on Saturday, US officials said, in what could be a first step toward resolving a trade war disrupting the global economy. Beijing has also stepped up efforts to stimulate economic growth amid looming tariff risks. China, HK stocks gain on trade deal hopes The People's Bank of China will cut loan prime rate - a key benchmark for setting lending rates in China - by 10 basis points, personal housing provision fund rate by 25 basis points, and set up 500 billion yuan in re-lending loans for elderly care and service consumption, Governor Pan Gongsheng said on Wednesday. China's offshore yuan slipped to 7.2140 per dollar following the rate-cut announcements. The three indexes have nearly recouped all losses incurred since April 2, when US President Trump slapped punitive tariffs on trading partners and triggered a global market selloff.
