Shanghai and Hong Kong strengthen financial cooperation for the digital renminbi.

Shanghai and Hong Kong have signed a new "Action Plan" aimed at enhancing financial connectivity, focusing on the digital Renminbi and Renminbi-backed stablecoins. This initiative is led by Liu Bin, director of the Financial Research Office at the Pudong Reform and Development Institute, with discussions taking place at the Lujiazui Forum in June 2025.

Both cities aim to establish a regulatory framework and cross-border infrastructure to expand the capabilities of the digital Renminbi, which could challenge USD stablecoins in Asia. Paul Chan Mo-po, the Secretary for Financial Services and the Treasury of Hong Kong, emphasized the importance of collaboration with Shanghai to promote financial innovation. The financial community has responded positively, anticipating strong policy support for pilot projects and regulatory sandboxes in the future.