The Hong Kong Stock Exchange has reportedly “blocked” transformation plans proposed by at least five listed companies seeking to transform into digital asset treasury (DAT) entities. wenweibo news.
According to sources cited by foreign media, the Hong Kong Stock Exchange has not yet approved any listing or conversion application related to DAT. The exchange reportedly questioned the intentions of several companies planning to change their business models to holding or managing crypto reserves.
There are no regulations governing DAT in Hong Kong.
Huang Tianyou, chairman of the China Securities Regulatory Commission (CSRC), said: said Reporters said that Hong Kong does not have any laws regulating cryptocurrency investment or the participation of listed companies in financial agreements. He explained that regulators are closely monitoring market developments and will issue directives if new guidance is needed to protect investors.
“The DAT model is gaining popularity in the U.S.,” Huang said, referring to the trend of companies allocating cash reserves to purchasing digital assets held in the Treasury. “There is a lot of documentation and analysis showing that if a company buys $1 billion of a cryptocurrency, its market value can more than double. But that situation is also being considered in the United States.”
The CSRC chairman also warned that most local investors have little understanding of what DAT actually is.
“As regulators, it is essential that we educate our investors. Once they are educated, they will realize that the stock prices and valuations of companies that move to DAT are often accompanied by large premiums. If these activities are one day formally regulated, those premiums could disappear overnight,” he speculated.
He added that if DAT companies apply for an initial public offering in Hong Kong, they will need to fully convince both the CSRC and the stock exchange during the approval process. “It should be impossible to list in Hong Kong in the form of DAT at this point,” he said.
Regulatory gray areas regarding financial limits for digital assets
Huang further explained that the lack of clear rules makes it difficult for listed companies to determine how much digital assets they can purchase with their cash reserves. “Can’t you just buy one Bitcoin? How about 10? How about 100?” he asked. “If all a company’s cash was converted to Bitcoin, would that be justified just because Bitcoin is a liquid asset?”
The regulator confirmed that Hong Kong’s “same shares, different rights” (WVR) mechanism, introduced in 2018, is under consideration. In this year’s policy, the city’s chief executive announced his intention to optimize the system to better accommodate high-quality innovation and technology companies.
Mr Huang said the review would be comprehensive, with the main aim of protecting small shareholders and distinguishing legitimate innovation companies from exploitation. “The first principle is to ensure that the interests of minority shareholders are not violated,” he concluded.
Hong Kong crypto companies concerned about stablecoin enforcement
The city’s regulatory vigilance over DAT structures comes against the backdrop of China’s special jurisdiction’s efforts to create a regulated digital asset ecosystem. In August, the government introduced new legislation allowing licensed entities to issue stablecoins, virtual currencies pegged to real-world currencies such as the US dollar.
However, economists believe Hong Kong is being “too cautious” with its stablecoin laws, which counter the expansion seen in the United States after Western countries imposed similar crypto-friendly regulatory efforts.
Recent reports suggest that the Chinese government’s increased involvement in monitoring digital assets is creating uncertainty in the trajectory of Hong Kong’s cryptocurrencies. The People’s Bank of China (PBOC) has reportedly subpoenaed several mainland companies under its jurisdiction, including banks and non-bank payment providers, and instructed them to: refrain Stablecoin initiatives are undecided until further notice.
The Financial Times reported that Ant Group and JD.com are among the companies ordered not to proceed with stablecoin projects. Some of these potential issuers were once keen to apply for Hong Kong’s first stablecoin license, but are now taking a wait-and-see approach, according to people familiar with the matter cited by the FT.
