China Asks Brokers to Pause Real-World Asset Tokenization in Hong Kong

China’s securities regulator has directed some domestic brokerages to pause real-world asset (RWA) tokenization activity in Hong Kong amid concern about rapid digital asset innovation. RWA tokenization refers to traditional assets like property, real estate, or stocks being converted into tradable digital tokens. This step signals caution from Beijing as Hong Kong seeks to enhance its virtual asset market. Shares in brokers such as Guotai Junan International and GF Securities dropped after the announcement. The duration and scope of the pause are unclear.