Two of China’s major technology players, Ant Group and JD.com, have put their ambitions to issue stablecoins in Hong Kong on hold, following clear signals from Beijing that such private-sector currency issuance may be off-limits for now. Over the summer, both companies had shown interest in joining Hong Kong’s new pilot programme for fiat-backed tokens. Ant had announced plans to apply for a licence to issue stablecoins in the territory once its licensing regime came into effect on Aug.1. JD.com, too, was reported to be lobbying for an offshore yuan-oriented stablecoin via Hong Kong. Hong Kong’s Stablecoin Dreams Face Mainland Resistance However, the mood has shifted. The Financial Times reported Sunday that officials at the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the firms to pause or abandon moves to issue or back stablecoins from Hong Kong. Their main worry is that if large tech firms or brokerages begin issuing tokens that function like currency, it could weaken the central bank’s authority. One person told the FT that regulators are focused on ensuring that the right to issue money remains solely with the state, not private companies. Hong Kong’s stablecoin licensing regime had created a new frontier. The territory’s de facto central bank, the Hong Kong Monetary Authority (HKMA), rolled out the framework after legislation was passed in May, opening a channel for token-issuers backed by fiat currency. Officials Shift From Enthusiasm To Restraint On Hong Kong Stablecoins Some officials in mainland China initially saw the programme as a chance to expand the renminbi’s reach beyond national borders. They believed that yuan-pegged stablecoins issued through Hong Kong could help counter the dominance of US dollar-backed tokens worldwide. However, that optimism faded by late August. At a closed-door forum, former PBoC governor Zhou Xiaochuan urged a more cautious approach. He warned that stablecoins could easily become vehicles for speculation or even fraud. He also questioned whether they truly added value to everyday retail payments. By then, Beijing’s tone had clearly shifted. Regulators began prioritising financial stability and state control over rapid innovation in the digital currency space. Tug Of War Emerges Between Hong Kong’s Openness And Beijing’s Control Regulators made it clear that private companies issuing currency-like tokens must yield to China’s priority of preserving monetary control. Innovation, in their view, cannot come at the cost of sovereignty. For Ant and JD.com, the timing could not be more sensitive. In June, Ant announced plans to apply for a stablecoin licence. Yet by mid-October, both firms had quietly stepped back, following Beijing’s guidance to pause. The move captures a growing tension between Hong Kong’s push to build a global digital asset hub and Beijing’s preference for restraint. While Hong Kong continues to accept applications, authorities have already cautioned that only a few licences will be approved at first, and only after rigorous scrutinyTwo of China’s major technology players, Ant Group and JD.com, have put their ambitions to issue stablecoins in Hong Kong on hold, following clear signals from Beijing that such private-sector currency issuance may be off-limits for now. Over the summer, both companies had shown interest in joining Hong Kong’s new pilot programme for fiat-backed tokens. Ant had announced plans to apply for a licence to issue stablecoins in the territory once its licensing regime came into effect on Aug.1. JD.com, too, was reported to be lobbying for an offshore yuan-oriented stablecoin via Hong Kong. Hong Kong’s Stablecoin Dreams Face Mainland Resistance However, the mood has shifted. The Financial Times reported Sunday that officials at the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the firms to pause or abandon moves to issue or back stablecoins from Hong Kong. Their main worry is that if large tech firms or brokerages begin issuing tokens that function like currency, it could weaken the central bank’s authority. One person told the FT that regulators are focused on ensuring that the right to issue money remains solely with the state, not private companies. Hong Kong’s stablecoin licensing regime had created a new frontier. The territory’s de facto central bank, the Hong Kong Monetary Authority (HKMA), rolled out the framework after legislation was passed in May, opening a channel for token-issuers backed by fiat currency. Officials Shift From Enthusiasm To Restraint On Hong Kong Stablecoins Some officials in mainland China initially saw the programme as a chance to expand the renminbi’s reach beyond national borders. They believed that yuan-pegged stablecoins issued through Hong Kong could help counter the dominance of US dollar-backed tokens worldwide. However, that optimism faded by late August. At a closed-door forum, former PBoC governor Zhou Xiaochuan urged a more cautious approach. He warned that stablecoins could easily become vehicles for speculation or even fraud. He also questioned whether they truly added value to everyday retail payments. By then, Beijing’s tone had clearly shifted. Regulators began prioritising financial stability and state control over rapid innovation in the digital currency space. Tug Of War Emerges Between Hong Kong’s Openness And Beijing’s Control Regulators made it clear that private companies issuing currency-like tokens must yield to China’s priority of preserving monetary control. Innovation, in their view, cannot come at the cost of sovereignty. For Ant and JD.com, the timing could not be more sensitive. In June, Ant announced plans to apply for a stablecoin licence. Yet by mid-October, both firms had quietly stepped back, following Beijing’s guidance to pause. The move captures a growing tension between Hong Kong’s push to build a global digital asset hub and Beijing’s preference for restraint. While Hong Kong continues to accept applications, authorities have already cautioned that only a few licences will be approved at first, and only after rigorous scrutiny