Author: Weilin, PANews
On July 11, news reported that the Shanghai 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. Prior to this, Wuxi also held a special promotion meeting, mentioning 'exploring the practical path of stablecoins empowering foreign trade development,' possibly responding to the speech given by the central bank governor Pan Gongsheng at the 2025 Lujiazui Forum in June.
At the same time, on July 11, at 1:46 PM, Bitcoin broke a new high. According to OKX market data, BTC surpassed $118,000, reaching a historical high of $118,050 per coin, with a daily increase of 5.96%.
Shanghai State-owned Assets Supervision and Administration Commission: Research on the development trends of cryptocurrencies and stablecoins.
According to Jinshi reports, during the central group study meeting, He Qing, the Party Secretary and Director of the Shanghai State-owned Assets Supervision and Administration Commission, pointed out the need to fully implement the spirit of the 12th Municipal Party Committee's 7th Plenary Session, adhere to innovation-driven development, maintain keen perception of emerging technologies, and strengthen research and exploration of digital currency. He emphasized the integration of production and digital technology, discussing the application of blockchain technology in areas such as cross-border trade, supply chain finance, and asset digitization. He also highlighted the importance of being proactive and enhancing strategic agility to further promote the deep integration of technology, finance, and industry, better leveraging the important role of state-owned assets and enterprises in technological innovation, industrial control, and security support, to make new and greater contributions to the construction of Shanghai's 'five centers.'
This comes as the Hong Kong (Stablecoin Regulation) is set to take effect on August 1 of this year, at which point 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 regulation, striving to establish guidelines as soon as possible.
On July 11, the stablecoin concept stocks in the Hong Kong market surged in early trading, with Jinyong Investment (01328.HK) rising over 30%, surpassing a market capitalization of 2.5 billion HKD; Guotai Junan International (01788.HK) rose over 7%, OSL Group (00863.HK) rose over 5%, and China Everbright Holdings (K0165.59663665%, China Everbright Holdings (K0165.5966366366226630000000593).
Subsequently, A-share digital currency and blockchain concept stocks also continued to surge in the afternoon, with Hengbao Co., Puxian Software, and Zhongke Jincai hitting the upper limit, while Liti Tiandi, Jida Zhengyuan, and New Zhiyuan had significant increases.
Influenced by the U.S. federal-level legislation on stablecoins (Genius Act), the European MiCA compliance framework, and Hong Kong's (Stablecoin Regulation), the wave of stablecoin compliance has expanded globally. The phenomenon of stablecoins 'breaking out' has continued for some time.
On July 4, the Wuxi Municipal Committee held a special promotion meeting for 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 levels of cross-border e-commerce, intermediate goods trade, and offshore trade development.'
Recently, Fulao Investment, a subsidiary of Quan Shi International, and the People's Government of Yanji City signed a memorandum of understanding regarding potential cooperation in Hong Kong to develop digital economy-related business matters. The memorandum mentions designing a multilateral points exchange system targeting the cross-border tourism consumption scenarios in Yanji. Utilizing the unalterable characteristics of blockchain to ensure transparency in points issuance, while bridging the points systems of merchants from China, South Korea, and Russia through offshore RMB stablecoin. Consumers can exchange local consumption points for stablecoins to pay directly at overseas partner merchants. A 'dual compliance framework' is adopted, with the underlying being fiat-collateralized stablecoins issued by licensed institutions in Hong Kong to ensure fund compliance; the exchange transactions designated by the Yanji government can connect to international blockchains.
Think tank suggests: The development of RMB stablecoins can adopt an 'internal and external combination' approach.
The exploration of stablecoins in Shanghai and Wuxi, both located in the Yangtze River Delta region, reflects their policy discussions possibly in response to the speech made by the central bank governor Pan Gongsheng at the 2025 Lujiazui Forum in June.
On June 18, the central bank governor Pan Gongsheng stated at the 2025 Lujiazui Forum that new technologies are accelerating their application in cross-border payment fields. New technologies such as blockchain and distributed ledger are driving the vigorous development of central bank digital currency stablecoins, reshaping the traditional payment system 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 promote the evolution and development of the multinational payment system. In addition, Pan Gongsheng also proposed a pilot reform of comprehensive offshore trade financial services in the Lingang New Area of Shanghai, innovating business rules and supporting Shanghai in developing offshore trade.
The rapid development of stablecoins has attracted suggestions from think tanks. On July 10, Yang Tao, deputy director of the National Financial and Development Laboratory, wrote an article suggesting that the development of RMB stablecoins should adopt a 'domestic offshore + offshore' linkage model, coordinating the pilot exploration of the Shanghai Free Trade Zone and the offshore market in Hong Kong. The article points out that current RMB stablecoins should be led by central regulation, establishing a mechanism for on-chain issuance combining wholesale and retail, and achieving 'electronic perimeter' compliance through technological means. He also suggested establishing a dual currency system of CNYC (domestic offshore RMB stablecoin) and CNHC (offshore RMB stablecoin), supporting cross-border payment, 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.
However, the 'breaking out' effect of stablecoins has also triggered more market risk awareness and reflection. Recently, (Xinhua International Viewpoint) 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 mentions that 'in recent years, stablecoins have entered a rapid growth phase, attracting widespread attention from international public opinion. Many well-known companies and institutions have accelerated their layout in the stablecoin market.' The article then interprets the characteristics, roles, application scenarios, and issuers of stablecoins.
On July 7, the illegal platform disguised as a stablecoin, 'Xin·Jia,' exploded. According to a report from the Public Security Bureau of Taojiang County, Hunan Province, some individuals invested through the 'DGCX Xin Jue Jia' platform at the recommendation of others. This platform misused the name of the Dubai Gold and Commodity Exchange (DGCX) to attract funds, but was actually an unauthorized and unqualified illegal platform that promised high returns and induced expansion through member rebates. Since June 25, the platform has been unable to process withdrawals normally, suspected of a funding chain break, constituting a significant risk of fundraising fraud. The public security authorities remind individuals not to participate in investments in such unapproved platforms.
On July 7, the Shenzhen Office for Preventing and Combating Illegal Financial Activities also issued a risk warning regarding illegal fundraising under the guise of stablecoins. The office stated that recently, digital currencies represented by stablecoins have received widespread attention in the market. Monitoring has revealed that some illegal organizations are absorbing funds through methods described as 'financial innovation' and 'digital assets,' luring the public with insufficient understanding of stablecoins and other features by issuing so-called 'virtual currencies,' 'virtual assets,' etc., to absorb funds, enticing the public to participate in speculative trading, disrupting economic and financial order, and giving rise to illegal fundraising, gambling, fraud, pyramid schemes, money laundering, and other public criminal activities, severely endangering economic and financial order and the safety of social property.
On July 9, news reported that the Beijing Internet Finance Association also issued a risk warning, alerting against illegal institutions and individuals utilizing concepts such as 'stablecoins' for illegal fundraising. Related activities lure the public into investing through false promises of high returns and fund pool operations, with issues such as lack of qualifications, concept packaging, and risk spillover. Once the funding chain breaks, investors may face huge losses.
In summary, as cities like Shanghai and Wuxi accelerate their exploration of stablecoin applications, the prospects for the application of digital currency and blockchain technology in China are gradually emerging. However, in this innovative field, it is also necessary to remain vigilant about the hidden risks and take effective regulatory measures to ensure healthy market development.
(The above content is excerpted and reprinted with the authorization of the partner PANews, original link)
"Shanghai explores stablecoins assisting foreign trade: Related concept stocks continue to strengthen, but risks cannot be ignored". This article was first published in (Blockchain Client).
