Author: Weilin, PANews
On July 11, news emerged that the Shanghai Municipal State-owned Assets Supervision and Administration Commission held a central group study meeting on July 10, focusing on the development trends and response strategies of cryptocurrencies and stablecoins. Subsequently, A-share digital currency and blockchain concept stocks continued to rise in the afternoon of July 11. Previously, Wuxi also held a special meeting to advance the topic, mentioning "exploring the practical path of stablecoins empowering foreign trade development." This may respond to the speech by central bank governor Pan Gongsheng at the 2025 Lujiazui Forum in June.
Meanwhile, at 1:46 PM on July 11, Bitcoin broke a new high. According to OKX market data, BTC surpassed 118,000 USD, setting a new historical high at 118,050 USD per coin, with a daily increase of 5.96%.
Shanghai Municipal State-owned Assets Supervision and Administration Commission: Research on the development trends of cryptocurrencies and stablecoins.
According to Jinshi reports, at a central group study meeting, He Qing, Secretary of the Shanghai Municipal State-owned Assets Supervision and Administration Commission, pointed out that it is necessary to fully implement the spirit of the 7th plenary session of the 12th Municipal Committee, adhere to innovation-driven development, maintain a keen perception of emerging technologies, and strengthen research and exploration of digital currencies. Adhere to the integration of production and data, and explore the application of blockchain technology in cross-border trade, supply chain finance, and asset digitization. Adhere to being proactive, improving strategic agility and initiative, further promoting the deep integration of technology, finance, and industry, and better playing the important role of state-owned assets and enterprises in technological innovation, industry control, and safety support, making new and greater contributions to the construction of Shanghai's "five centers."
This comes just as the Hong Kong (stablecoin regulation) is set to take effect on August 1 this year, when the Hong Kong Monetary Authority (HKMA) will begin accepting license applications. Currently, the HKMA is conducting market consultations on the specific guidelines for implementing the regulations, striving to establish guidelines as soon as possible.
On July 11, the concept of stablecoins in the Hong Kong stock market surged in the morning, with Golden Prosperity Investment (01328.HK) rising over 30%, its market value exceeding 2.5 billion HKD; Guotai Junan International (01788.HK) rose over 7%, OSL Group (00863.HK) rose over 5%, and stocks such as China Everbright Holdings (00165.HK) and Delin Holdings (01709.HK) followed suit.
Subsequently, the A-share digital currency and blockchain concept stocks continued to rise in the afternoon, with Hengbao Co., Ltd., Puhua Software, and Zhongke Jincaichu hitting the daily limit, while Sanwei Tiandi, Jida Zhengyuan, and Xinzhi Software were among the top gainers.
Influenced by the federal-level legislation on stablecoins in the United States (Genius Act), the European MiCA compliance scheme, and Hong Kong (stablecoin regulations), the wave of stablecoin compliance has expanded globally. The phenomenon of stablecoins 'going mainstream' has continued for some time.
On July 4, the Wuxi Municipal Committee held a special meeting to advance key reform tasks. According to the official announcement, the meeting mentioned "exploring the practical path of stablecoins empowering foreign trade development, continuously expanding the growth space for digital trade, green trade, and service trade, and improving the development level of cross-border e-commerce, intermediate goods trade, and offshore trade."
Recently, QuanShi International's subsidiary, Fu Lao Investment, and the Yanji Municipal People's Government signed a memorandum of understanding regarding the possible cooperation in Hong Kong on digital economy-related business matters, mentioning the design of a multilateral point exchange system targeting cross-border tourism consumption scenarios in Yanji. Utilizing the tamper-proof characteristics of blockchain to ensure the transparency of point issuance, while bridging the point systems of merchants in China, South Korea, and Russia through offshore RMB stablecoins. Consumers can exchange local consumption points for stablecoins to pay directly at overseas partner merchants. A "dual compliance framework" will be adopted, with the underlying stablecoins issued by licensed institutions in Hong Kong backed by legal currency to ensure the compliance of funds; exchanges designated by the Yanji government can connect to international blockchain.
Think tank suggestion: The development of RMB stablecoins can combine both domestic and foreign aspects.
The exploration of stablecoins in Shanghai and Wuxi, both located in the Yangtze River Delta region, may respond to the speech given by the central bank governor Pan Gongsheng at the 2025 Lujiazui Forum in June this year.
On June 18, Pan Gongsheng, the governor of the central bank, stated at the 2025 Lujiazui Forum that new technologies are accelerating their application in cross-border payment fields, with new technologies such as blockchain and distributed ledgers promoting the vigorous development of central bank digital currencies and stablecoins, reshaping traditional payment systems from the ground up, significantly shortening the chain of cross-border payments, while also posing significant challenges to financial regulation. Technologies such as smart contracts and decentralized finance will continue to drive the evolution and development of cross-border payment systems. In addition, Pan Gongsheng also proposed to launch a pilot comprehensive reform of offshore trade financial services in the new area of Lingang, Shanghai. Innovate business rules and support Shanghai in developing offshore trade.
The rapid development of stablecoins has attracted advice and suggestions from think tanks. On July 10, Yang Tao, deputy director of the National Financial and Development Laboratory, suggested in an article that the development of RMB stablecoins should adopt a "domestic offshore + overseas offshore" linkage model, coordinating the pilot exploration of the domestic Shanghai Free Trade Zone and the overseas Hong Kong market. The article points out that currently, RMB stablecoins should be primarily regulated by the central government, with a mechanism that combines wholesale and retail, and an on-chain issuance mechanism, while achieving compliance through technological means such as an "electronic fence." He also suggested establishing a dual currency system of CNYC (domestic offshore RMB stablecoin) and CNHC (overseas offshore RMB stablecoin) to support cross-border payments, RWA settlement, and RMB internationalization, emphasizing the need to strictly control risks and accelerate the construction of the legal framework.
Shenzhen, Beijing: Be vigilant against illegal fundraising under the guise of stablecoins and other names.
However, the 'going mainstream' effect of stablecoins has also triggered more market risk awareness and reflection. Recently, (Xinhua International Highlights) connected with Liu Ying, a researcher at the Renmin University of China's Chongyang Institute for Financial Studies, to interpret the development of stablecoins. The article mentioned that "in recent years, stablecoins have entered a rapid growth phase, attracting widespread attention from international public opinion, with many well-known companies and institutions accelerating their layout in the stablecoin market." The article then interpreted the characteristics, roles, application scenarios, and issuers of stablecoins.
On July 7, the illegal platform disguised as a stablecoin, 'Xinkangjia,' exploded. According to the report from the Public Security Bureau of Taoyuan County, Hunan Province, some people invested through the 'DGCX Xinkangjia' platform upon others' recommendations. This platform misappropriated the name of the Dubai Gold and Commodities Exchange (DGCX) to raise funds and was actually an unauthorized and unqualified illegal platform that promised high returns and induced expansion through member recruitment and commissions. Since June 25, the platform has been unable to withdraw funds normally, suspected of a broken capital chain, constituting a significant risk of fundraising fraud. The public security authorities remind people not to participate in investments with such unapproved platforms.
On July 7, the Shenzhen Municipal Office for Preventing and Combating Illegal Financial Activities also issued a risk warning (about being vigilant against illegal fundraising under the guise of stablecoins and other names). The office stated that recently, digital currencies represented by stablecoins have attracted widespread attention from the market. Monitoring found that some illegal institutions use "financial innovation" and "digital assets" as a gimmick, taking advantage of the public's insufficient understanding of stablecoins to absorb funds through issuing so-called "virtual currencies," "virtual assets," and "digital assets," inducing the public to participate in trading speculation, disrupting economic and financial order, and breeding illegal fundraising, gambling, fraud, pyramid schemes, and money laundering activities, which seriously endanger the property safety of the public.
On July 9, the Beijing Internet Finance Industry Association also issued a risk warning, cautioning against illegal institutions and individuals using concepts such as "stablecoins" for illegal fundraising. Related activities induce public investment through false promises of high returns and fund pool operations, with issues of lack of qualifications, concept packaging, and risk spillover. Once the capital chain breaks, investors may face significant losses.
In summary, as the exploration of stablecoin applications accelerates in places like Shanghai and Wuxi, the application prospects of digital currencies and blockchain technology in China gradually emerge. However, in this innovative field, it is also necessary to be vigilant about the potential risks and to take effective regulatory measures to ensure the healthy development of the market.
