Shanghai State-owned Assets Supervision and Administration Commission studies stablecoin. Mysterious Eastern forces push BTC to new heights?

On July 10, the Party Committee of the Shanghai State-owned Assets Supervision and Administration Commission held a central group study meeting to discuss the development trends and countermeasures of Crypto Assets and stablecoins. As soon as this news was released, it was regarded as a major signal for the further opening of stablecoins and other Crypto Assets in the country.

On July 11, Bitcoin once again broke new highs, with the market experiencing a general rise. Some in the Crypto community have begun to jokingly suggest that a mysterious Eastern power has once again driven this new round of market ascent.

The Hong Kong stocks and A-shares related to stablecoin and encryption concepts have also welcomed a new round of price increases. For instance, Guotai Junan International (01788) reached a historic high on July 11, with its stock price rising from HKD 1.42 to a maximum of HKD 7.07 since June 25.

Recently, news has been emerging that relevant enterprises in mainland China and Hong Kong are entering the stablecoin market or launching virtual currency-related services, such as Ant International integrating USDC and JD.com entering the stablecoin space, among others.

Release of Signal

In the official announcement, the Shanghai State-owned Assets Supervision and Administration Commission's learning focused on "stablecoins and their development trends, risks, and responses," clearly centering on stablecoins, and the leading learning is being conducted by the Shanghai State-owned Assets Supervision and Administration Commission, which is seen by the market as carrying a policy signal.

The Shanghai Municipal State-owned Assets Supervision and Administration Commission plays a critical role in the financial system. On one hand, as China's financial center, Shanghai's state-owned asset system oversees numerous core enterprises directly related to finance, including Shanghai International Group, Shanghai Bank, Guotai Junan, and others, which have significant layouts in various fields such as securities, trusts, funds, and leasing. On the other hand, the Shanghai Municipal State-owned Assets Supervision and Administration Commission has consistently demonstrated strong execution and guidance in promoting local financial reform, supporting digital financial pilots, and participating in policy implementation.

Especially against the backdrop of Hong Kong having clearly introduced a regulatory framework for virtual assets and opened qualified trading platforms, whether mainland China is to some extent "quietly following suit" has also sparked widespread speculation in the market—what arrangements will China make next in the stablecoin and Crypto Assets sectors?

Previously, research reports published by brokerage firms such as CITIC Securities have repeatedly mentioned that "stablecoins may become part of the cross-border RMB experiment," and the RMB stablecoin has also been widely discussed in recent months.

Shanghai does have some state-owned enterprises that are already experimenting with stablecoins, RWA, and other new concepts. It is evident that mainland China is exploring how to integrate into the Crypto Assets industry, and it is currently in small-scale pilot programs. The Shanghai State-owned Assets Supervision and Administration Commission's initiative to take the lead in learning is a signal that has been captured by the public.

Stocks of state-owned or semi-state-owned enterprises involved in encryption-related businesses have also seen a significant rise following the release of this signal. For instance, Guotai Junan International Holdings Limited successfully obtained approval on June 24 to upgrade its securities license to a virtual asset trading and consulting license, becoming the first Chinese brokerage firm with such qualification. On the day the news was released, the stock price jumped from about 1.42 HKD to a peak of 3.7 HKD, an increase of nearly 100%. It continued to rise strongly in the following days, reaching a high of 7.07 HKD on the 11th. Meanwhile, other Chinese brokerages such as First Shanghai, Shenwan Hongyuan Hong Kong, Hongye Futures, and Zhongzhou Securities also saw increases, with rises mostly between 10–25%. The entire "stablecoin + state-owned assets" concept sector has formed a rotation effect, driving related stocks to collectively strengthen, becoming a force that cannot be ignored in this round of increase.

Companies are very anxious

The national signal is being released so clearly, and companies are also rushing to catch up.

According to Bloomberg, Ant International, a subsidiary of Ant Group, plans to collaborate with Circle to integrate the US dollar stablecoin USDC, and is currently awaiting USDC to obtain regulatory approval in the United States before it can go live. Ant International is an independently operated entity established by Ant in Singapore, which has rapidly developed since its establishment in 2023, currently processing approximately $1 trillion in cross-border transactions. The company also plans to apply for stablecoin issuance licenses in places such as Hong Kong, Singapore, and Luxembourg.

From the market's perspective, USDC, as a relatively compliant stablecoin closely related to U.S. regulations, being integrated by large Chinese technology companies undoubtedly signifies a certain level of policy negotiation or tacit approval.

JD, through its subsidiary JD Coin Chain Technology ( Hong Kong ), has applied for a stablecoin issuance license and has currently joined the Hong Kong Monetary Authority's stablecoin sandbox program. At present, JD's goal is to obtain licenses in multiple sovereign currency countries worldwide, initially focusing on B2B trade and supply chain scenarios, and then expanding to consumer payments and internal e-commerce trading systems.

Behind Bitcoin's breakthrough to new highs, is there really a "mysterious Eastern force" at play? Perhaps it cannot be confirmed from a technical perspective. However, there are indeed increasingly more policy moves from mainland China and Hong Kong, collective trials from state-owned enterprises, and rapid deployments by tech giants, which may be forming a strong signal.

But it is undeniable that the mysterious Eastern power of the tripartite force of policies, capital, and industries on the Eastern land is more of a catalyst for market sentiment. The core ban on domestic Crypto Assets trading in mainland China has not been shaken. However, in the capital market, an increase in sentiment is enough.