jakiro
Jessy, bitchain vision
On July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a study meeting of the central group to study the development trends and response strategies of cryptocurrencies and stablecoins.As soon as this news came out, it was considered a major signal for the further opening of stablecoins and other cryptocurrencies in China.
Bitcoin also broke through a new high again on July 11, and the market generally rose.Some people in the crypto community have also begun to joke that it is the mysterious Eastern power that has once again promoted a new round of market growth.
Hong Kong stocks and A-shares, which involve stablecoins and crypto-related concepts, have also ushered in a new round of price increases.For example, Guotai Junan International (01788) hit a new record high on July 11, and the stock has risen from a high of HK$1.42 to HK$7.07 since June 25.
Recently, news has been constantly circulating that relevant companies in mainland China and Hong Kong have entered stablecoins or opened virtual currency-related services, such as Ant International will connect to USDC, JD.com will join stablecoins, etc.
Release of signal
In the official notice, the Shanghai State-owned Assets Supervision and Administration Commission’s study revolves around “stable coins and their development trends, risks and responses”, clearly focusing on stablecoins, and the Shanghai State-owned Assets Supervision and Administration Commission is the one who takes the lead in learning, which is regarded by the market as having a policy signal effect.
The Shanghai State-owned Assets Supervision and Administration Commission plays a very critical role in the financial system.On the one hand, as China’s financial center, Shanghai has a large number of core enterprises directly related to finance under its state-owned assets system, including Shanghai International Group, Shanghai Bank, Guotai Junan, etc., and has important layouts in many fields such as securities, trusts, funds, and leasing.On the other hand, the Shanghai State-owned Assets Supervision and Administration Commission has always had strong execution and guidance in promoting local financial reform, supporting digital finance pilot projects, and participating in the implementation of policies.
Especially in the context of Hong Kong’s clear introduction of a virtual asset regulatory framework and an open qualified trading platform, whether mainland China has “follow-key follow-up” to a certain extent has triggered widespread speculation in the market – will China have any layout in the stablecoins and cryptocurrencies next?
Previously, in research reports released by CITIC Securities and other securities companies, it also mentioned many times that “stable coins may become part of the cross-border RMB trial”. The RMB stablecoin has also been widely discussed in recent months.
In Shanghai, there are indeed some state-owned enterprises that are already trying new things such as stablecoins and RWA.It can be seen that how mainland China wants to connect to the encryption industry is also under pilot projects on a small scale, and the Shanghai State-owned Assets Supervision and Administration Commission’s leading learning this time is a signal captured by the public.
The stocks of state-owned or semi-state-owned enterprises related to encryption have also been released by this signal, and have ushered in a sharp rise in stocks.For example, Guotai Junan International Holdings Co., Ltd. was successfully approved to upgrade its securities license to a virtual asset trading and consulting license on June 24, becoming the first Chinese brokerage company with this qualification.On the day of the news, the stock price jumped from about HK$1.42 to a maximum of HK$3.7, an increase of nearly 100%. It continued to rise strongly in the following days, rising to HK$7.07 on the 11th.At the same time, Chinese securities companies such as Shanghai, Shenwan Hongyuan Hongyuan, Hongye Futures, and Zhongzhou Securities also rose one after another, with the increase mostly between 10-25%.The entire “stable currency + state-owned assets” concept sector has formed a rotation effect, driving the collective strengthening of related stocks and becoming a force that cannot be ignored in this round of rise.
The companies are in a hurry
The national signal is released so obviously, and enterprises are also following up.
According to Bloomberg, Ant International, a subsidiary of Ant Group, plans to cooperate with Circle to connect the US dollar stablecoin USDC, and is still waiting for USDC to obtain US regulatory approval before it can be launched online.Ant International is an independent operating entity established by Ant in Singapore. It has developed rapidly since its establishment in 2023 and has currently processed approximately US$1 trillion in cross-border transactions.The company also plans to apply for stablecoin issuance licenses in Hong Kong, Singapore and Luxembourg.
In the market’s view, as a relatively compliant and stablecoin with close ties to US regulation, USDC will undoubtedly mean a certain degree of policy negotiation or acquiescence if it is connected to large Chinese technology companies.
JD.com has applied for a stablecoin issuance license through its subsidiary JD.com Coin Chain Technology (Hong Kong), and has now joined the Hong Kong Monetary Authority’s stablecoin sandbox program.At present, JD.com aims to obtain licenses in many sovereign currency countries around the world, focusing on the B2B trade and supply chain scenarios in the initial stage, and then expanding to the internal transaction system of consumer payments and e-commerce.
Behind Bitcoin’s breakthrough to a new high, is there really a “mysterious Eastern power” driving it?Perhaps it cannot be proved from a technical level.But now there are indeed more and more policy actions from mainland China and Hong Kong, collective testing of state-owned assets, and rapid deployment of technology giants, which may be a powerful signal.
But it is undeniable that the mysterious Eastern power of the three parties of policy, capital and industry on the East is more of a catalyst for market sentiment.Mainland China’s core ban on domestic cryptocurrency trading has not wavered.But in the capital market, rising, sentiment is enough.
