Alibaba (9988)-affiliated Ant Group said it will not issue virtual currencies and will not participate in any form of speculation, after Hong Kong financial regulators repeatedly downplayed the stablecoin to curb potential speculation.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on Wednesday that the Hong Kong Monetary Authority has not licensed any stablecoin issuer and that buyers on unregulated channels must bear their own risk.
In July, HKMA chief Eddie Yue Wai-man had already cautioned that the market was becoming overheated as dozens of firms sought guidance on rules.
At a forum in Shanghai, Ant chief executive Cyril Han Xinyi said Ant has clearly defined its boundaries since the company started exploring the "token economy" – including how tokens and blockchain can integrate into the broader economy.
Instead, Ant will focus on building technological infrastructure, aiming to create real value rather than compete for existing benefits, he said.
The stance contrasts with earlier reports that Ant and JD.com (9618) had urged the People's Bank of China to consider yuan-based stablecoins to counter the rise of greenback-linked ones.
Meanwhile, China’s commerce ministry pledged to encourage foreign firms to expand digital investment and vowed to further open digital trade.
