Major technology companies in China, including Ant Group and JD Coinlink, have decided to postpone the launch of their own stablecoins in Hong Kong. This decision came after receiving recommendations from Chinese regulatory bodies, including the People’s Bank of China (PBOC) and the Cyberspace Administration of China.
This is reported by Business • Media
Regulators’ Position: Risks to the Digital Yuan
Regulators have expressed concerns about the growing influence of private stablecoins, which they believe could compete with China’s official digital currency—the digital yuan. They are calling for caution in the implementation of new financial instruments, emphasizing the need for oversight in their issuance.
“The real regulatory issue is who has the ultimate right to issue such assets—the central bank or any private companies in the market?”
Legislative Initiatives and Market Impact
In April 2025, the Hong Kong Ministry of Finance announced new legislative initiatives aimed at regulating the stablecoin sector. Following this, Ant Group and JD Coinlink announced their intention to participate in a pilot project for launching stablecoins pegged to the yuan. The projects were expected to start by the end of 2025.
However, under pressure from regulators, the companies were forced to suspend their plans. The People’s Bank of China and the Cyberspace Administration stated the need to avoid an excessive role for the private sector in the issuance of digital assets. According to PBOC Governor Zhou Xiaochuan, speaking at the China Finance 40 forum in late August 2025, there is a risk that excessive use of stablecoins for asset speculation could lead to financial instability and fraud.
Furthermore, Zhou Xiaochuan emphasized that in the retail payments sector, it is nearly impossible to reduce costs, which limits the practical potential of stablecoins in this segment. He also urged careful evaluation of the prospects for tokenizing real-world assets.