KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
China’s biggest tech firms are pressing pause on their stablecoin ventures after regulators in Beijing stepped in to curb private-sector involvement in digital currency issuance.
According to a Financial Times report, Ant Group and JD.com—two of China’s largest fintech players—have suspended plans to launch stablecoins in Hong Kong, following directives from the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC).
Regulatory Pushback Halts Hong Kong’s Stablecoin Momentum
The move comes just months after Hong Kong’s legislature passed a landmark stablecoin bill in May, establishing a licensing regime for fiat-backed stablecoins. The new framework aimed to position Hong Kong as a regulated digital asset hub and attract global issuers.
However, the intervention from Beijing highlights lingering concerns over monetary control and financial stability. Chinese authorities reportedly worry that allowing private firms to issue currencies—even in Hong Kong—could weaken state control over money flows and undermine the central bank’s digital yuan (e-CNY) initiative.
Under Hong Kong’s law, any entity issuing stablecoins in the city—or stablecoins backed by the Hong Kong dollar, whether domestically or abroad—must obtain approval from the Hong Kong Monetary Authority (HKMA).
Ant and JD.com Step Back
Ant Group, an Alibaba affiliate, had announced in June that it would join Hong Kong’s pilot stablecoin programme. Similarly, JD.com had expressed interest in participating. But following PBOC’s advisory, both firms have paused their projects indefinitely, according to FT sources.
The PBOC’s stance appears aimed at preventing large tech conglomerates from gaining influence in the monetary system—echoing its earlier clampdown on Ant’s digital payments ecosystem and financial products in 2020.
Policy Implications and Market Reaction
For investors, the pause underscores China’s dual-track digital currency strategy: promoting the state-controlled e-CNY while keeping tight limits on private-sector alternatives. It also signals that, despite Hong Kong’s autonomy in financial regulation, Beijing retains ultimate influence over the direction of digital finance.
The development could also dampen near-term enthusiasm in Hong Kong’s emerging digital asset and Web3 ecosystem, which had viewed stablecoins as a bridge between traditional finance and blockchain-based payments.
Outlook: Controlled Innovation Ahead
Analysts expect China to continue supporting blockchain and tokenization technologies, but within a state-supervised framework. The message is clear — innovation is welcome, but monetary sovereignty is non-negotiable.
For investors and fintech players, this latest move is a reminder that while Hong Kong remains a testbed for digital finance, Beijing still sets the boundaries of what’s possible.
Comments
Post a Comment